Overview
A. FIRM DESCRIPTION
Asset Risk Consultants (UK) Limited (“ARCUK” or the “Firm”) was established in 2014
as a private limited company under the Companies Act 2006 of England and Wales.
ARCUK is a wholly owned and UK regulated subsidiary of ARC Group Limited (“ARC
Group”).
ARC Group has some 73 staff and was established in 1995 and provides investment
consulting, manager research and performance reporting to private clients, charities,
family offices, professional trustees and their advisers. Through its investment
consultancy arm, ARC Group assists families and large charities with their investment
matters by providing an independent view and analysis which enables clients to
understand what each investment manager is doing for them. The Firm provides
clients with reassurance and peace of mind regarding their personal wealth in an
industry which is full of jargon.
ARC Group has a global client base and is 100% owned by senior management. No
individual has a direct interest in over 15% of the ordinary voting shares, although by
means of his co-trusteeship of the employee benefit trust Graham Harrison could
exercise control over 30% of the ordinary voting shares. Graham Harrison was the
founder of ARC and principal shareholder until 2014.
B. TYPES OF ADVISORY SERVICES
ARCUK investment consulting services assist clients with the selection and monitoring
of the performance of discretionary investment managers; setting up the overall
strategic asset allocation and risk-profile and manager specific objectives.
In certain cases we also assist clients with selection of collective investment vehicles as
satellite holdings to complement the core of discretionary managers. The methodology
for assessing the success or otherwise is the same regardless of whether we are looking
at a discretionary portfolio manager or a fund manager.
In our investment consultancy service ARCUK provides advice and written reports to
our clients and sits alongside them at meetings with their investment managers. We
seek to de-mystify the investment management business and allow clients to see what
progress they are making both against their own objectives, the industry average and
other available options. We either operate to review existing wealth structures or help
clients set up and transition to new arrangements, as necessary. That may involve
manager selection and on-going monitoring. Often we operate alongside other advisors
such as lawyers, accountants or trustees, to ensure that the client and Family Office
receive appropriate input across the board. ARC has expertise in geopolitical and
operational risk management for international investors who manage risks and
investment opportunities across a number of jurisdictions. Typically, our on-going
investment consulting offering includes the following:
• Monthly (or quarterly) performance reporting on each portfolio and the
“Aggregate Portfolio”, with any potential issues being identified
• Monthly (or quarterly) review of the tactical asset allocation of each manager
and the portfolio as a whole
• Monthly insight into the global macro-economic events and financial market
performance
• Semi-annual comprehensive written reports on sub-portfolio and Aggregate
Portfolio structure and performance
• Regular meetings or conference calls to discuss findings and ensure the
investment strategy remains appropriate
• Regular review of industry asset allocation trends.
• Annual review of the investment policy statement and risk profile in the light of
changing client circumstances
• Annual report setting out 10-year asset class performance forecasts and
implications for the investment policy statement
• Ad hoc manager selection
and general investment advice
ARC Group is considered by many to be among the leading independent, private client
discretionary investment consulting company in the British Isles. As a group we focus
on the following key areas:
➢ Investment Consulting – forward looking investment advice designed to
maximize the risk-adjusted returns being generated for our clients with
investment managers; unique use of risk and style profiling questionnaires,
investment audit on performance and structure of client portfolios as well as
ongoing investment advice. Fee is typically 10 basis points pa of the assets under
consulting but is designed bespoke to the clients’ needs.
➢ Research – more data held on discretionary managers than anywhere else
ranging from due diligence through performance data to investment style, much
of which is made freely available. Specific advice is available in relation to
potential manager identification, appointment, fee negotiation and portfolio
implementation is also available. Fee based on time charged.
➢ Reporting – multi-dimensional assessment of portfolios historical investment
performance to meet specific client or fiduciary requirements for portfolios of all
size and complexity, assisting and demonstrating fiduciary independent
performance oversight. Fees circa US$1,000 per annum ongoing per portfolio.
Our investment monitoring services complement our research and investment
consulting services and has assisted in Asset Risk Consultants becoming a leading
independent private client investment consulting practice. Our goal is to ensure you
receive the best experience possible from the investment management industry.
ARCUK does not undertake active portfolio management or execute trades on client
portfolios. However, any restrictions that a client may wish to set are incorporated in
investment guidelines to be issued to the appointed discretionary portfolio managers.
The services to be provided in the US are those detailed above as services provided by
ARCUK.
In the wider ARC Group active portfolio management occasionally occurs, in which case
such restrictions are taken into consideration when selecting potential mutual funds
that may be held as ‘satellite’ holdings by the client.
C. TAILORED RELATIONSHIPS
ARC tailors its services to the needs of every client and therefore can provide solutions
to client requirements ranging from portfolio audits, manager review, manager
selection, through to the on-going monitoring of discretionary investment managers.
There is a typical process to reviewing and monitoring a client’s portfolio but the
outcome of each review will differ as will the appropriate solutions for the client.
A risk profile questionnaire coupled with an assessment of the client’s circumstances
and discussion of their aspirations, risk appetite and concerns lead to the crafting of an
appropriate solution.
D. WRAP FEE PROGRAMS
Wrap Fee Programs are arrangements between broker-dealers, investment advisers,
banks, and other financial institutions and affiliated and unaffiliated investment
advisers through which clients of such firms receive discretionary investment advisory,
execution, clearing, and custodial services in a “bundled” form. In exchange for these
“bundled” services, clients pay an all-inclusive (or “wrap”) fee determined as a
percentage of the assets held in the wrap account.
Due to the nature of its advisory services, ARCUK does not participate in and is not a
sponsor of wrap fee programs.
E. ASSETS UNDER MANAGEMENT
As of June 30, 2023, ARCUK had assets under consulting and assets under advisement as
follows:
Discretionary Managed Assets $0
Non-Discretionary Managed Assets $0
Assets Under Advisement (not managed) $1024 million
As a whole, the ARC Group has over USD 17 billion of assets under consulting.