How will my family know what assets I have?

This is a question we come across in relation to both individual client portfolios and with trust accounts where the holdings are in certificated form. Some of the more common concerns we have heard from those solicitors entrusted to look after their clients’ certificated holdings are around the time it takes to deal with the necessary administration, the difficulty in providing an instant up-to-date valuation and the time taken to realise funds from the portfolio. There is also the very tangible concern that something may happen to the physical certificates themselves.

 

We have assisted firms to help reduce this burden. A member of our investment team will collect the certificated holdings along with all other associated paperwork, before sorting through the individual items to determine which are still valid. The holdings are consolidated into a single investment portfolio, which is held in the custody of our nominee company. The underlying client or trust remains the beneficial owner. As soon as the holdings are within our nominee company, the investment manager will review the portfolio to determine its value, risk profile and position in terms of capital gains.

 

Rather than the solicitor receiving all of the correspondence from the individual companies whose stocks are held, once the investments are within our nominee company we will look after all annual accounts, shareholder communications, corporate actions, dividends and any other associated notices. We collect the dividends and distribute or reinvest as desired. The solicitor will simply receive six-monthly valuations, with further valuations available on request, plus a consolidated annual tax pack to assist with any tax return.

In addition to reducing the administrative burden, it is useful to see accurate valuations for the total holdings, and it can be a source of reassurance to know they are being managed properly. Where there are capital requirements, funds are generally accessible in two to three days, in contrast to the 10-day settlement periods associated with certificates.