What private banking support can Investec provide to hedge fund managers?
A career in the hedge fund industry comes with unique financial needs. Here, Investec Private Banker Jemina Mentz explains how Investec could help hedge fund managers respond to common challenges and make the most of the opportunities that emerge.
1. What private banking services does Investec offer?
Jemina: At Investec, we have a private banking team that specialises in building long-term relationships with hedge fund managers. This gives us detailed insight into the complex and irregular income streams that are typical of the sector and enables us to provide tailored financial support.
Alongside transactional banking, we offer bespoke mortgages, foreign exchange services and high-net-worth savings accounts. Through our long-term strategic partnership with Rathbones Group, our clients can also access dedicated wealth management teams. They can assist with financial planning, retirement planning, discretionary and execution-only portfolios.
2. Why could fund managers benefit from a tailored mortgage?
Jemina: We can tailor both the mortgage structure and loan amount to an individual’s circumstances, rather than using tick-box methods. Typically, this means we can offer a higher value loan than retail banks as we can consider discretionary, deferred and foreign currency income in affordability metrics. In addition, we can usually offer more flexible repayment terms. Options might include interest-only periods, capital reductions and revolving credit facilities. This flexibility allows clients to manage their cashflow needs.
We also recognise that speed and efficiency of service are vital in today's property market. Our mortgage team operate swiftly to help buyers seize opportunities.
We can tailor both the mortgage structure and loan amount to an individual’s circumstances, rather than using tick-box methods.
3. How do you help clients manage their foreign currency income?
Jemina: Clients with exposure to foreign currency, including US dollars and Euros, have the option of securing an exchange rate using an FX Open Forward contract. This enables them to set a rate up to 24 months in advance and can provide much-needed certainty around future income.
Meanwhile, our in-house foreign-exchange dealers can help monitor currency markets, using spot trades and market orders to execute transactions when pre-agreed target rates are met.
4. Can you help clients to create liquidity?
Jemina: Absolutely. A number of our clients choose to borrow funds using mortgage structures with flexible drawdown and repayment terms. Those who hold their investments with Investec Wealth & Investment (part of Rathbones Group) on a discretionary basis also have the ability to borrow against the value of a portfolio.
Find out more about how an Investec private banker can help you.
Important Information:
This article is for general information purposes only and should not be used or relied upon as professional advice.
Your property may be repossessed if you do not keep up repayments on your mortgage. Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility.
You can only book an FX Forward which is for an underlying personal or commercial spending purpose. Additional terms and eligibility criteria apply for FX Forwards.
Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the
Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.
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