A conversation with Katherine Coveney, Senior Private Banker

Katherine is a highly experienced wealth manager with a career spanning over two decades in private banking and wealth management in London, the Far East and the Channel Islands. In her current role as a senior member of the Coutts Crown Dependencies team based in Jersey, she brings a wealth of knowledge and a deeply personal approach to her clients.Katherine’s journey was shaped by a family background in finance – her father an accountant and her sister already a part of Coutts. She tells us why a career in wealth management has been so fulfilling.

What does your current role entail?

As a Senior Private Banker at Coutts Crown Dependencies, I focus on advising local resident clients in Jersey and Guernsey. The Channel Islands offer a unique lifestyle, and it’s a place where I’ve been able to truly get to know my clients on a deeper level, thanks to a more relaxed pace of life and the different working culture. My role is about understanding the broader picture of my clients’ priorities and objectives, tailoring strategies to help them achieve their goals, whether it’s growing their portfolio, preparing for retirement or passing wealth to the next generation.

I provide bespoke wealth advice, addressing cash flow, tax considerations, and major life events such as business sales or inheritances. Diversification is key, as it helps mitigate risk while aiming for steady growth over time. I also work hard to blend traditional banking methods with modern technological solutions to cater to clients across generations. Some clients often prefer tech-driven services, while others clients value in-person interactions. Being adaptable is crucial.

What motivates you in your work?

I am extremely motivated by professional improvement and continuous learning is a significant part of my DNA. The bank keeps us fresh through regular training and seminars. As one of the most experienced Private Bankers on the team, I enjoy mentoring colleagues and sharing insights I’ve gained over the years.

Coutts has supported and enabled me to achieve my Level 6 Private Client Investment Advice and Management qualifications, which above and beyond the benchmark in the industry.

I’m also very driven. Bringing a new client on board or seeing a long-term strategy come to fruition is incredibly rewarding. I also value the trusted relationships I build with my clients. People buy people. Coutts is an aspirational brand, but it’s the personal touch that secures long-term partnerships.

2024, a look back

A lot happened in 2024, and it’s been important that Coutts, as our investment manager, stayed true to its investment philosophy.  Take risk where it’s well rewarded, always being cognisant of the downside and acting on market dislocation.

It was also a year when many experts started the year with a less than optimistic outlook amid fears around geopolitics and potential recessions, neither of which materialised. Coutts took a positive view, and it was that view that has helped them achieve outstanding performance for our clients in 2024. Coutts delivered great performance in absolute terms, materially outperformed the average of our peers, and beat benchmark in gross terms.

The multi-asset funds and discretionary portfolios have benefitted additionally from leaning into ‘risky’ assets – equities and high yield bonds – and holding a diversifying position in gold. As the economic backdrop shifted, Coutts took profits on both the high yield and gold allocations.

During the summer of 2024, Coutts made a strategic shift in its equity allocation to global equities, which will provide our investors with further access to growing opportunities worldwide.

Looking Ahead

The economic landscape for 2025 is characterised by a balance of opportunities and potential risks. Growth is expected to stabilise but remain below pre-pandemic levels, particularly as advanced economies face the challenge of managing inflation while fostering growth. Emerging markets have the potential to revert from their recent lacklustre growth to once again be global economic contributors, especially in regions investing heavily in technology and infrastructure.

However, geopolitical risks, including the ongoing dynamics between the US and China, will continue to influence global trade and market sentiment. Donald Trump’s Presidential victory indicates a strategic pivot towards domestic policies that may alter international trade relationships. For investors, this means staying agile and diversified, especially across growth opportunities despite broader market uncertainties.

To navigate this complex landscape, understanding the nuanced impacts of fiscal and monetary policy shifts on the major asset classes such as equities and bonds, as well as sector-specific trends, will be critical. Coutts multi-asset funds and discretionary portfolios lean into the positive outcomes of the business cycle while earning still-attractive bond yields. Underlying investments continue to be weighted toward risky assets, specifically global equities, and more specifically via a blend of two active fund managers with good track records of picking high quality, multinational companies with strong profit-making potential. Within the bond space, Coutts is currently leaning away from Japanese government bonds as it is the one region where inflation and interest rates are rising rather than falling.

I don’t have a crystal ball but if I had to make an educated prediction for potential risks that could develop in the year ahead, I would say:

• inflation makes a comeback
• recession is not impossible
• rising oil prices; tariffs under a Trump presidency and China’s balance sheet recession not receiving enough fiscal remedy could all have implications on market performance.

While Coutts is “risk-on”, the bank remains cognisant of risk. Therefore, its investment process is designed to address the potential outcomes of these scenarios should any of these risks come to fruition.

On a personal level, as someone with a passion for excellence, I’m committed to delivering the highest standards of advice and expertise throughout 2025 for my clients in Coutts Crown Dependencies

You can read the Coutts Investment Outlook for 2025 here.

And finally, what do you do in your spare time?

Outside of work, I cherish the natural beauty of Jersey. I spend a lot of time outdoors with my cockapoo, Milo, exploring coastal paths and cliffside trails. Fitness is also a priority for me. I’ve recently taken up spinning and strength training. Family is equally important; I love visiting my daughter Megan, a 23-year-old paramedic based in Chester. We make the most of our time together with holidays, whether it’s a summer getaway or a skiing trip in winter.

Past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can fall as well as rise and you may not get back what you put in. You should continue to hold cash for your short-term needs.