Five-Year Milestone: Waugh McDonald GBP Portfolios

Oct 1, 2025

At the end of Q2 2025, our GBP portfolios crossed the five-year mark since inception. This milestone is more than a performance update. It is a validation of our investment philosophy and a quiet affirmation of the outcomes we’ve built for families who value stewardship over speculation. 

Our equity-focused Adventurous GBP Portfolio delivered a 63.48 percent cumulative return or 10.33 percent annualised, through a full market cycle. That cycle included COVID, war in Europe, inflation shocks, rate hikes, and sector rotations. It was a proper test of any strategy. 

Benchmarking the Outcome 

To frame this in context, we compared our performance to two peer group benchmarks and two respected private banks. These benchmarks were selected for their credibility, transparency, and relevance to the type of portfolio we manage. 

• STEP MPI High Risk GBP Index and ARC Equity Risk GBP represent aggregated performance across a wide range of discretionary managers. They offer a realistic view of what high-risk investors have experienced over the same period.

• UBS (London and Jersey) Global Growth GBP and RBC High Risk GBP are mandates from well-regarded private banks operating under UK and Channel Islands regulation. These are portfolios that meet suitability and client-first standards and are often used as reference points for institutional-grade wealth management.

Our portfolio significantly outperformed all four comparators: 

• STEP MPI High Risk GBP Index: 34.99 percent

• ARC Equity Risk GBP: 33.70 percent

• UBS Global Growth GBP: 37.15 percent

• RBC High Risk GBP: 33.49 percent

It’s important to clarify what we mean by “high risk” in this context. These portfolios are not high risk in the sense of being speculative or prone to capital loss. Rather, they are equity-led strategies that carry higher short-term volatility. This means values may fluctuate more over time, but the long-term trajectory is built on discipline, diversification, and compounding. For long-term investors, this is often the most effective path to real wealth creation. 

Regulatory Integrity and Investor Protection 

Our portfolios are custodied in Jersey and managed in London, in partnership with Morningstar Wealth. This structure offers exceptional levels of investor protection, transparency, and suitability oversight. Clients benefit from the regulatory standards of Jersey and the UK, which prioritise client-first obligations and long-term alignment. 

We continue to see arrangements marketed to Kenyan families that are structured through booking centres outside these jurisdictions. While some portfolios are linked to trustees in well-regarded jurisdictions, the investment mandates themselves are often distributed through channels that do not apply the same regulatory rigour. These structures may lack proper suitability assessments, carry hidden fees, and prioritise distribution over stewardship. 

We believe families deserve better. Our approach is designed to meet the highest standards of fiduciary care, with clear governance, robust oversight, and outcomes that speak for themselves. 

Planning and Investment Philosophy 

We do not sell products. We build portfolios that serve long-term plans. Every investment strategy is paired with comprehensive financial planning, including budgeting, goal setting, and cash flow modelling. 

Our philosophy is grounded in stewardship. We favour globally diversified, tax-efficient structures that compound over time. We avoid market timing, performance chasing, and opaque instruments. Instead, we focus on what works: discipline, diversification, and alignment with client values. 

We are not a financial sales company. We prefer to let outcomes speak for themselves. Our clients know the difference, and increasingly, so do their peers. 

A Moment to Reflect and Reassess 

This milestone is not just about performance. It is about what disciplined, planning-led investment management can achieve when paired with strong governance and client-first care. 

We invite families, trustees, and advisors to take this opportunity to reflect on their current arrangements. Whether you are reviewing offshore portfolios, considering long-term planning, or simply seeking clarity on how your capital is being managed, we welcome a conversation. 

Our team is available to walk through your current structure, benchmark outcomes, and explore how our approach might support your long-term goals. Quietly and with care. 

Your family’s wealth deserves clarity, stewardship and care. To benchmark your current portfolios or discuss long-term investment strategies, connect with our team at info@waughmcdonald.co.ke.

Richard Waugh

CEO