Why should you pay someone to manage your money?

Richie Griffiths considers the benefits of paying someone to manage your money and suggests what you should look for when choosing an investment manager.
Share on facebook
Share on linkedin
Share on twitter
Share on email
Published 16 January
3 mins

There are two main ways you can go about investing: you can do-it-yourself and create your own execution only investment portfolio; or you can appoint a discretionary manager who will select and manage your investments for you.

This first option is fine if you have knowledge or an interest in finance, or time on your hands! These days, the volume and ease of access to information in the media can give the illusion that investing is easy. But as the recent fall of even high profile fund managers, such as Neil Woodford, reminds us – past performance is not necessarily a predictor of future returns!

Alternatively, you can delegate your financial decisions to an established discretionary manager, who can work with you to design a portfolio to meet your specific financial needs and appetite for risk, and then manage it for you. Inevitably, this will incur costs over and above the standard dealing costs associated with managing your own portfolio, but a good discretionary manager should be worth the investment.

Five things to look for in an investment manager

1. A long-term focus

Taking a long-term view means you should not need to take more risk than you are comfortable with. Investments that promise to achieve a lot in a short period of time are almost certainly too good to be true. You could even lose some of your original investment given the close relationship between risk and reward. 


Investing over the long term also allows you to benefit the most from equities – a type of investment that can really help your portfolio grow. Unfortunately, equity investments also tend to react the most to short term events and markets can, of course, go down, as well as up – hence the need for a long-term focus and a clear investment process to remove the emotions associated with investing.

2. An understanding of risk

It is easy to be deterred by the necessary discussions about risk, but a good investment manager will manage these for you. And it is important to always remember that without investing, you could run the risk of not achieving your financial goals.

3. Is the portfolio properly diversified?

An investment manager should be properly diversified and different types of diversification can include:

  • Multiple investments – using funds rather than a very small number of direct company investments
  • Different types of assets, including equities, bonds, cash, property and alternative assets
  • Different geographies, countries at different stages of development all around the world
  • Different currencies – an approach not many investment managers currently take.

All investments are affected by what is happening in the world, but different types behave in different ways. This means the manager can seek to maximise your investments returns, within the range of risk you are comfortable with.

4. Is there a home bias in the asset allocation?

Asset allocation is how the manager decides what percentage of your investments should be invested in which type of investment. They should draw on an extensive investment research capability to advise on the most appropriate asset allocation for you, from both a strategic and tactical perspective.


By actively managing the investments that are bought on your behalf, the manager seeks to benefit the most from how each of these investments are expected to behave over the long term, based on economic, financial and political changes individually and collectively.


An investment manager should not be limited by the country you call home. After all, your salary, family home and any number of your other assets are already affected by what is happening in that country. Why should your investments have to be in the same boat?

5. Is there a keen eye on costs?

Every investment manager will say that cost is an important factor in their approach, but it really is crucial. A good manager can provide wider market access, to primary markets and institutional rates that are not available to an individual investor.


A good discretionary manager can add value by applying their experience and expertise to meet your investment goals. Most importantly, they can take an objective view and remove some of the emotion from financial decision making, which should provide peace of mind and free up your time for better things.

Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how we ensure that these five areas of potential concern are actively managed, or call +44 (0)1624 645000 to speak to our client services team.


If you would like to find out more about how we manage clients’ investments, please contact us on the same number as above, or get in touch via the forms linked towards the end of the page.

Investments can go down, as well as up, to the extent that you might get back less than the total you originally invested. Exchange rates also impact the value of your investments. Past performance is no guide to future returns. Any individual investment or security mentioned may be included in clients’
portfolios. They are referred to for information only and are not intended as a recommendation, not least as they may not be suitable. You should always seek professional advice before making any investment decisions.

about the author

Richie Griffiths

Richie Griffiths

Richie has over 20 years’ experience in the financial services industry, holding a variety of roles in the banking, treasury and investment sectors. Previous positions were held at Barclays Bank and, latterly, Ermitage Global Wealth Management Jersey Limited where he was a director and member of its investment committee.


His main responsibilities involve providing the highest level of service to a number of domestic and international high-net-worth private clients, in addition to maintaining select intermediary relationships. Richie builds strong relationships with his portfolio of clients and provides a tailored and holistic private banking service, offering integrated banking, lending and investment management solutions.
Richie is a Chartered Fellow of the Chartered Institute for Securities & Investment.

Access more of our insights


The week in review

19 Jan

   |   2 mins

A review of the week of 11 January saw world equities overall down just over -1% in US Dollar and Sterling terms. Read more about the news headlines impacting financial markets.


13 January investment webinar: 2021 outlook

13 Jan

   |   40 mins

David McFadzean was joined by Andrew Yeadon to talk through what investment trends we see in 2021 financial markets, the risks facing investors, and what that means for portfolios.


What the January Senate wins mean for markets

12 Jan

   |   5 mins

In a week of dramatic events that led to the US president facing his second impeachment proceedings, the US also saw the Georgia senate run-offs decided. Rebecca Cretney explains what that should mean for markets. 


December's investment market commentary

7 Jan

   |   3 mins

December was another strong month for investors as riskier assets continued their rise, given the good news offered by the COVID-19 vaccines, as Andrew Yeadon’s update explains.

Get in touch

If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.


We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.

Become a Client

Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.  Please note: If you are an EU resident, we are unfortunately unable to offer our services to you at present.

* Required fields

Contact Us

Give us a call today on +44 (0)1624 645000 or please complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.

Our office hours are weekdays from 8am to 8pm UK time, except for UK public holidays.

* Required field

Search suggestions


Beware of scams using Nedbank Private Wealth’s name.


Have you received an email or SMS claiming to be from Nedbank Private Wealth, inviting you to open an account?


Don’t be tricked – Nedbank Private Wealth never contacts members of the public directly, and will never use email or text messages to ask you for your bank details or sensitive personal information.


We are aware of scams using our name and those of our staff. These are usually intended to convince you to send money to the scammers, who use our name because it sounds legitimate.


If you are in any doubt about whether an email or SMS in our name is legitimate, please speak to your private banker, or call the telephone numbers on the “Contact us” page.