Investing through an independent adviser

by David Kelleher

Placing your money in a local or international investment fund can be risky unless you are properly advised. Yet, at the end of the day most investment consultants must always take into consideration the company they are acting as agents for. Receiving a totally unbiased and fair assessment of the best type of investment therefore depends on receiving advice from independent financial consultants.

Professional Investment Consultants (PIC (Malta) Ltd) are independent financial advisers who only represent the client rather than any particular investment company.

Speaking to The Malta Business Weekly, a spokesman for PIC said: "We are agents for the customer and not agents for the adviser. Thus we are able to give a fair and unbiased opinion and obtain the best deal for our clients. This is our main strength."

PIC were set up in Malta in August last year after receiving a Category I licence from the Malta Financial Services Centre. The mother company is based in Dubai and was set up in 1983 to service the needs of expatriates and international investors who seek independent financial advice, asset protection and an investment strategy to meet long-term goals.

"Clear, objective thinking and a sound understanding of the prevailing investment climate govern the assessment of our clients' aims," the spokesman said.

The company has established a network of office throughout the Middle East and Europe, with satellite offices in Indonesia and Kenya.

"We place considerable emphasis on our clients' individual requirements and offer a service to clearly determine their investment strategy. PIC has an intrinsic advantage in that we are totally independent and can, therefore, provide impartial advice to meet the needs of individual and corporate clients," he added.

PIC's role in Malta is to continue developing the local investment market and provide Maltese investors with an opportunity to access offshore funds/bonds. "With the relaxing of exchange control regulations, Maltese investors can now make tax-efficient offshore investments. This has created a whole new sphere of investment opportunities," the spokesman told The Malta Business Weekly.

PIC represents over 60 of the world's leading investment and fund management groups. The company has also recently signed a sole distribution agreement with Invesco Asset Management Limited. Representatives will be coming to Malta for talks on obtaining a secondary listing on the Malta Stock Exchange.

"We see ourselves as a niche market player and very customer oriented. We are not restricted in our search for the most suitable investment opportunity that will achieve the best return for our client," the PIC spokesman said.

Asked whether local investors may be wary of trusting an independent adviser and prefer someone already established, the spokesman said that PIC has a long track record of achieving excellent investment performance, coupled with the fact that they have no access to clients' funds.

"The Maltese are guarded investors but from what we have seen over the past months they are willing to make that next step. They are no longer inward-looking.

Surprisingly enough, 80 per cent of our business comes from referrals, and close contact with the Malta Chamber of Commerce has also been instrumental in our success," he said.

He said that PIC were generally looking for the next generation of investors, who recognise that capital growth comes from a balanced, diversified and truly global investment portfolio. One peculiar aspect PIC have noticed here is that the Maltese are willing to invest their money in bonds that are secured over a long period of time.

"It is odd, considering that investing in equities is much more profitable in the long run than in bonds. There is a much better return on the international market, albeit the risks are slightly higher," the spokesman said.

PIC (Malta) Ltd offers a wide range of services for private clients including capital investments, discretionary management service, tax and trusts advice, regular savings, retirement planning, insurance, school fees planning and mortgages. On a corporate basis, PIC offer corporate benefits, corporate pension and provident schemes, plus discretionary portfolio management.

For more information contact PIC on tel: 419876, or by email at: picmalta@waldonet.net.mt.