7IM’S Urquhart Stewart tells IFAS at threesixty Conference to Diversify
IFAS should be looking to invest their clients in non-Anglo Saxon areas of the world following the volatility that continues to plague western markets, Justin Urquhart Stewart, Director and Co-Founder of Seven Investment Management, told delegates at the first national conference to be held by threesixty, the IFA support services provider.
The sub-prime crisis that hit the markets from August has coincided with signs that the US and UK economies are slowing, and the key issue will be to see what further impact the storm created will have on the wider global economy, said Urquhart Stewart.
But he added: “The question of a potential recession in both nations is still being evaluated, however all may not be such doom and gloom because there are other areas of the world where growth is buoyant and may well act to counterbalance the Anglo Saxon economies’ current weaknesses.“
He said the question for the UK investment industry now is one of a question of confidence in the banking system and ensuring that confidence continues, despite the constrictions to liquidity. Once current problems are past it will be vital for professional wealth managers to assure their clients that they maintain confidence in the investment markets and look to the medium term and not just short-term worries, he said.
Urquhart Stewart added: “The financial tempest that hit the markets have meant that many well-known investment houses have not just hit some rocks but have been effectively stranded on the reef. This was a classic example of investment complacency and greed overruling investment discipline. This is a clarion call for us to return to the rigorous disciplines, processes and structures of professional investment management. Now is the time for some cool heads and clear thinking.”
David Ingram, Partner at threesixty, added: “With so many IFAs looking to offer a service that manages wealth on an ongoing basis, it is vital that they understand how to manage client expectations through short-term periods of volatility as well as calmer times. Less experienced investors are more inclined to make rash, short-term decisions which may not be in their long-term interests. IFAs can play a key role in helping their clients weather these investment storms with the minimum damage. We are delighted Justin has imparted some of his knowledge to threesixty clients in Dublin.”
threesixty’s inaugural national conference for its clients was held at the luxury CityWest Hotel in Saggart, County Dublin, Ireland on the 20th and 21st September 2007. As well as presentations from various product providers, there was also a debate on the Retail Distribution Review (RDR) for which the panel includes representatives from the various RDR working parties, including the FSA.
For further information on the event, IFAs should contact threesixty by emailing dublin@threesixtyservices.co.uk.