When Looking for a Wealth Mnager, It’s Discipline, Transparency and Alignment That Drives Long-Term Results.
At SCM Direct, we were founded in 2009 with a simple objective: to improve investor outcomes.
Born in the aftermath of the Global Financial Crisis, our mission was clear – eliminate unnecessary costs, remove conflicts of interest, prioritise risk management, and deliver institutional-quality investment management for retail investors with full transparency.
Today, more than 15 years later, those founding principles remain unchanged.
A Disciplined Discretionary Approach
SCM was one of the first UK investment managers to operate a hybrid actively-passive investment model, which means we have one of the longest track records for actively managing pure ETF discretionary portfolios.
That means:
- Strategic asset allocation grounded in valuation and macro analysis
- Active risk positioning when market extremes emerge
- Implementation through carefully selected ETFs to maximise diversification and minimise cost
- Full cost transparency — no hidden fees, no performance charges, no exit penalties
True discretionary management is not about hugging benchmarks. It is about making informed, evidence-based decisions when markets become complacent or overly exuberant.
Long-Term Performance Through Multiple Cycles
Since inception, our flagship strategies have delivered strong net returns:
- Long-Term Return Strategy (since inception June 2009): +232.7%
- Absolute Return Strategy (since inception June 2009): +167.2%
- Bond Reserve Strategy (since inception May 2011): +51.2%
(All figures net of all costs.)
More recently, rolling 12-month performance to 31 December 2025 highlights continued resilience:
- Long-Term Return: +16.0%
- Absolute Return: +14.0%
- Ethical ESG: +14.3%
- Equity Portfolio: +20.2%
Importantly, these returns have been delivered across portfolios holding more than 5,700 underlying securities globally, demonstrating genuine diversification rather than reliance on a handful of large-cap stocks.
Performance in Industry Context
Recent independent industry analysis from the Defaqto MPS Comparator, covering approximately 3,000 portfolios across 123 discretionary fund managers, showed:
- Average 3-year cumulative return in the Growth cohort: 33.58%
- Wide performance dispersion between managers
- Significant cost variation across providers
This dispersion reinforces an important point: discretionary outcomes vary dramatically depending on process, cost structure and risk discipline.
Our focus has never been short-term ranking tables. It has been consistent compounding, controlled downside risk and cost efficiency – particularly during inflation shocks, rate tightening cycles and periods of extreme market concentration.
Navigating Investment Environments in 2026
The current market backdrop presents several consequential risks:
- Elevated inflation pressures
- Extreme US market concentration exceeding dot-com levels
- AI-driven capital expenditure imbalances
- Structural shifts in Japanese monetary policy
- Valuation divergence between US and UK equities
Our positioning reflects this reality:
- UK equity overweight based on valuation and yield advantages
- Reduced exposure to concentrated US mega-cap technology
- Emphasis on value discipline and real bond yields
- Unhedged Japanese exposure, benefiting from yen strength
Discretionary management requires judgement. Our expert, experienced SCM Investment Team operate with a contrarian, independent mindset and can step away from consensus when valuations and fundamentals diverge.
Transparent Costs. Full Alignment. What Wealth Management Excellence Really Means
Excellence in discretionary wealth management is not about chasing headlines or short-term market themes.
It is about:
- Protecting capital when markets are complacent
- Participating intelligently in long-term growth
- Managing risk proactively
- Maintaining cost discipline
- Acting transparently
- Investing alongside clients
That has been our philosophy since 2009 – and it remains unchanged today.
One of the most persistent drags on long-term returns is unnecessary cost.
We operate with 100% transparency and with all cost savings passed onto clients. For example, our Long-Term Return Portfolio carries a fully disclosed all-in cost of 0.90% per annum. By comparison, traditional active fund + platform + adviser models often carry a 1.75 – 2.5% fee.
We charge:
- No performance fees
- No initial charges
- No exit penalties
- No hidden platform rebates
- Our SIPP wrapper is one of the most competitive with a maximum annual charge is £50 +VAT. The ongoing annual fee is 0.1% +VAT; subject to a minimum annual charge of £15 +VAT.
Most importantly, SCM’s founders invest significant personal capital in the same portfolios, on identical terms as clients. Alignment is not a marketing phrase. It is embedded in our structure as they have ‘skin in the game’.
If you would like to understand how our portfolios are positioned, their diversification, performance and fees, see here . You can also book a consultation call, try our FREE Risk Profiling Tool, or email us at enquiries@scmdirect.com.
Your capital is at risk. Past performance is not a guide to future returns.
