Typically, smaller, and independently operated, ‘investment boutiques’ are firms which generally manage less than $10 billion in assets under management, and they usually specialise or have expertise in a particular area of investing. If you have been searching through an abundance of fund managers and aren’t sure if you should choose a boutique option or a large investment firm, read on to discover why boutique fund manager a very attractive alternative.

Agility

Boutique managers are often nimbler than their larger counterparts. They tend have a simpler organisational structure, and this results in more freedom to manage money without having to follow a company-wide philosophy. With less time dedicated to the organisational politics of larger institutions, they can be more creative, make quicker decisions, and trade more effectively.

A Focus on Performance and Results

Generally having less staff, boutique firms focus almost entirely on investment management. Many back office and business functions such as accounting, legal, compliance, and distribution are usually handled by other parties, meaning they can concentrate on what they do best – which is drive results.

Passionate and Experienced

Most smaller fund managers are professionals who worked their way through the ranks at bigger firms learning the tricks of the trade and honing their investment styles. Following their passion of investing independently, they set up their own fund to invest without the burden of bureaucracy.

Vested Interests

A boutique fund manager usually holds a particular interest in the company. This ownership model promotes long-term stability and a strong alignment of interest between employees and investors, increasing their motivation to outperform.

Accessible Portfolio Managers

The ability to speak one-on-one with a portfolio manager sets the boutique experience apart from larger asset managers. Manager access is critical for investors who seek to understand a boutique manager’s strategy and how it fits within the overall portfolio.

Asset Managers, Not Accumulators

Unique investment strategies, track record, size, and agility are some of the key reasons why investors turn to boutique fund managers. In most cases, such managers are willing to limit growth in assets, preferring to concentrate on investment performance rather than the size of their assets under management.

Looking for a Boutique Australian Equities Fund Manager?

While smaller fund managers have a greater opportunity to outperform, it isn’t necessarily a guarantee of success. Every investor should always do their own research before choosing the right fund manager and select one that suits their needs and aligns with their personal investment goals.

SG Hiscock s a multi award-winning boutique fund manager specialising in high conviction actively managed investment strategies and Managed Discretionary Portfolios. For more information about the benefits of boutique investing or to start your investment journey, get in touch with our team today. Enquire online now or call 03 9612 4600 today.