James Hambro & Partners: The challenges of looking after US clients

Introduction

ARC’s consulting, research and reports are designed to help investors and advisers make informed decisions. There are many challenges facing US-connected investors – and especially for families domiciled internationally and with assets held in multiple jurisdictions.

In this Q&A, based on a recent webinar for an audience of advisers, ARC’s Chris Curtis asks leading experts how they navigate the complex minefield of rules and regulations.

Key findings

• Advisers and trustees with US-connected individuals can benefit from having an investment manager with SEC authorisation and expertise in building bespoke portfolios without PFICs to avoid tax pitfalls that can be costly for clients.
• JH&P specialises in building portfolios with direct equities and has experience of managing portfolios for a wide range of US-connected clients. It works closely with specialist US advisers, both in the US and elsewhere.
• ARC works closely with a select range of advisers and can help build teams or guide advisers and trustees towards the right investment partner – based not just on technical expertise but also on issues like investment performance, type of institution and personalities.
• JH&P has technology in place to prevent managers inadvertently buying PFICs and to ensure US-connected clients enjoy the same quality of stock selection as other clients.
• The rising number of global families means this is an issue for more advisers and trustees. Political tensions in the US are encouraging more families to move assets out of the US.