Newport Private Wealth

An independent review by our team of experts.

Review summary

Newport Private Wealth

Newport Private Wealth is an Australian-based discretionary specialist portfolio management firm with an Australian Financial Services Licence

Services are largely aimed at institutional and ‘sophisticated’ retail investors, rather than the broader individual investor market.

Newport describes itself as a “Boutique Investment Management Firm.”

Overview

Newport manages multi-asset, multi-manager portfolios using a combination of absolute return managers, relative return managers and passive index tracking ETFs.

The portfolios are diversified across a range of asset classes including: domestic equities, international equities, listed property, commodities, fixed interest, cash (or cash equivalents) and absolute return strategies.

Newport Private Wealth delivers its international DFM offering to clients via offshore or international financial advisers who are linked to life companies and platforms based in the Isle of Man or Guernsey.

Newport provide a unique service in the international space, having no minimum level of investment, and offering a DFM service for clients locked into long term regular savings contracts, or lump sum offshore bonds.

It is a comprehensive multi-asset service, covering the major currencies, and most major risk categories.

It is run based on asset allocation provided by Momentum Investment Management in the UK, they replicate this asset allocation on a best fit basis, with whatever fund universe the product in question has on offer.

The pros

  • Strong brand
  • Traditional approach to beating markets
  • Secure

The cons

  • Expensive way to invest
  • Active methodology is academically questionable
  • Pays retrocession commission to your adviser which can create conflict
FAQs
What are Newport Private Wealth's two core portfolios?

The two core portfolios are:

MWI Multi-Asset Balanced Model Portfolio (available in USD & GBP) 

The MWI Multi-Asset Balanced Model Portfolio holds a portfolio of managed funds.  50% of the portfolio (the portfolio core) will be invested in diversified absolute return strategies, and 50% of the portfolio (the portfolio satellites) will be invested in a mix of growth assets (equities, property, commodities) and defensive assets (fixed income securities, cash) through specialist fund managers.

The allocation to individual asset classes is managed on a tactical basis.  Underlying fund managers are monitored regularly on both quantitative and qualitative measures.

MWI Multi-Asset Growth Model Portfolio (available USD & GBP)

The MWI Multi-Asset Growth Model Portfolio holds a portfolio of managed funds.

50% of the portfolio (the portfolio core) will be invested in diversified absolute return strategies, and 50% of the portfolio (the portfolio satellites) will be invested in growth assets (equities, property, commodities) through specialist fund managers.

The allocation to individual asset classes is managed on a tactical basis.  Underlying fund managers are monitored regularly on both quantitative and qualitative measures.

Whilst the asset allocation does its job well, performance can be hampered by the restricted fund universes of the relevant platforms, and the high costs inherent in using life provider platforms and mirror funds.

They are a preferred outcome though compared to the only alternative for many people – a lack of investment process offered by their international financial adviser!

What do Newport Private Wealth charge?

Newport Private Wealth say they charge one all-inclusive and transparent fee.

"We charge a fee for the investment management services we provide, as opposed to “commissions” or “loads” based on transactions. Our fees are based on the size and composition of your portfolio. As fiduciaries, we are not incented to trade or transact, but rather to protect and grow your investments. We are paid to do what you would do if you had the time and expertise to dedicate to managing your investments. Also included in our investment management fees are our wealth management services such as financial, tax, estate and succession planning – added value for your money."

What this doesn't tell you is that if you use a financial adviser or a family office structure this will be a charge on top, and there could be wrapper fees as well.

What's the minimum investment required to become a client of Newport Private Wealth?

Newport's services are designed for individuals or families with a minimum of $1 million of investable assets or currency equivalent.

They also work with individuals who have high incomes, complex financial needs and/or significant illiquid net worth that merit integrated wealth management.

Clients with less than $1 million to invest are served by Lonsdale Portfolios, a division of Newport Private Wealth that provides discretionary investment management.

Customer reviews
Excellent service

I've been a client for 7 years, I'm comfortable recommending Newport.  Their attention to every client detail is second to none.

Expert verdict
Expert Assessment of Newport Private Wealth

Whilst Newport Private Wealth is a respected name and they provide a range of international actively managed DFM solutions, we believe that there are still better and more cost-effective alternatives for expat investors.

If you already have a Discretionary Managed Portfolio with Newport Private Wealth and it is worth £50,000 or more, we recommend you have a free, no obligation X-Ray Review™ conducted to give you the information you need to make a decision on the best way forward.

“Thank you AES International for helping me and my family with your low cost no-nonsense approach. It is refreshing!”

Kristian Petersson

“With this sort of service you also expect to be paying very high fees, but it’s just not the case. I would definitely recommend AES.”

Jake van den Dries

“In the short time that I’ve been using AES I’ve made nearly ten thousand pounds and couldn’t be happier!”

Jackie Pym

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