Elkstone Family Office

Elkstone Family Office May 2020

FIONA’S SNAPSHOT

This month we provide a review of Equity Markets, which have rallied very strongly and swiftly from their lows in March. We also look at the reasons why someone engages a family office to manage their wealth and detail one of the key elements of our investment offering which is a Portfolio Review looking at a clients existing asset portfolios to highlight characteristics of current positioning and possible shortcomings and identification of potential cost savings.

Fiona Sweeney is CEO of Elkstone Private

 

 

EQUITY MARKET REVIEW

The main international equity markets, with the exception of Hong Kong, have risen by between +2.0% (UK) and +6.4% (Japan) in the month of May to date. The Global Equity Market which had fallen some -30% from the start of the year to 23rd March 2020, was down less than -8% YTD at the close of business on Thursday, 28th May 2020 (all figures in Euro terms).

As outlined previously, the US market has fared far better than European markets. The US market is down -5.0% in the YTD on the S&P 500 Index while the European market is down -14.5% on the Euro Stoxx 600 Index. The performance of the US market has been significantly bolstered by its heavy weighting in technology stocks, which have performed very well. The US NASDAQ Index, which measures the performance of technology stocks, is up +5.8% YTD after a +4.0% rise in the month of May to date.

Tensions between Hong Kong and China have driven the Hong Kong Stock-market down -8.1% in May to date, bringing the YTD return to -16.5%.

Equity Market Returns YTD to cob on Thursday, 28th May 2020 are outlined in the table below.

Equity Markets have risen from their 2020 lows on the belief that Governments and Central Banks through Quantitative Easing (QE) and vast Fiscal Packages, have averted the prospect of an economic collapse. They have also been very positive towards the re-opening of some countries and the short-term plans in place to re-open others. They have ignored for now at least, very poor economic forecasts for 2020 and the poor company earnings that have been reported.

Markets have rallied very strongly and swiftly from their lows in March. We believe that going forward from here markets will be choppy and there will likely be better buying opportunities than at present.

 

Why Engage a Family Office

The genesis of Elkstone is rooted in the provision of Multi-Family Office (‘MFO’) services to a small number of wealthy families. We secured our first high-net-worth international client in 2011. Since then, through referrals and word of mouth, additional families have been added. Elkstone Multi-Family Office acts as the focal point for a client/ family’s wealth. The key elements of our offering include Independent Guidance and Oversight of clients’ Investment Portfolios and Experienced Investment Managers providing active and passive active management for a portion or all of a client’s wealth.

“Our clients are typically individuals or families

without the requisite time or experience to manage their wealth.” 

 

We are different to other Multi-Family Offices in not only advising our clients in asset allocation and investments, but also providing access to our exclusive Venture Capital and Real Estate investment opportunities. Below is a brief summary of our Family Office offering:

Our Mission is to serve as a long-term trusted, value-adding partner and advisor to our clients. We have highly experienced Investment, Real Estate, and Venture Teams. This expertise coupled with our network of professional partners allows us to give confident, effective, and highly valuable advice to clients.  Our multi-disciplinary team is available at all times to develop and revise plans with our clients and families and to provide advice to them on a wide range of matters including Investments, Pensions, Trusts, Wills, and Tax.

 

One of the key elements of our investment offering includes a Portfolio Review:
– Asset Allocation: Review of clients existing asset portfolios to highlight characteristics of current positioning and possible shortcomings. The Review examines the portfolio’s overall asset allocation and will stress-test the allocation for a range of possible events. This is best done across a client’s entire investment portfolio. This is offered as a one-off service with a semi-annual service check. It will include a comprehensive risk analysis.

– The Portfolio Review includes advice on asset allocation positioning and investment manager selection. This is tailored to an individual client’s specific circumstances. This will be offered as a one-off service with a semi-annual service check. It will include a comprehensive risk analysis.

– Understanding risk across the full spectrum of a client’s investment portfolio, particularly when multiple investment managers are employed, is essential to successful long-term investment returns. Elkstone measures the clients’ exposures in aggregate and provides guidance on managing risks.

– The Portfolio Review also encompasses the identification of potential cost savings. Investors often incur costs they are unaware of, when their wealth is professionally managed. These costs have a very significant bearing on investment performance over the long-term. Elkstone identifies and seeks to eliminate some of these costs.

 

Elkstone Private is an Experienced Investment Manager providing active asset management for a portion or all of a client’s wealth. This includes Multi-Asset Portfolios incorporating Equities, Bonds, and Alternative Assets as well as Venture Investment and Real Estate Investment. Elkstone Private is regulated by the Central Bank of Ireland under MiFID II, an EU-wide directive that harmonises regulation for investment services across EU member states.

If you would like to discuss having a Portfolio Review done by Elkstone, please do not hesitate to contact me: Fiona Sweeney – fiona@nullelkstoneprivate.com