Considerations when selecting a Tailored MPS Provider
Author: Paul Hogg, 8AM Global
Model Portfolio Services have been available to financial advisers in the UK for over 15 years. However, over that time many advisers have successfully continued to manage investments in advisory portfolio on behalf of their clients. Due to ever-increasing administrative and regulatory burdens, we are approached by many who are now considering options for outsourcing investment strategy support.
Consider your business needs
Start by evaluating the challenges within your business. What do your clients need?
- Are you spending too much time managing investments instead of focusing on financial planning and client relationships?
- Are there existing ‘off-the-shelf’ MPS solutions that align with your clients’ needs and business objectives?
- Would a cost-effective Tailored MPS better suit your clients’ risk/reward profiles and your firm’s strategy?
- Are you confident that you are able to satisfy the ongoing rigour and oversight required by the regulator in terms of both ‘value’, risk and performance attribution relative to the broader market?
At 8AM Global, we offer scalable, efficient solutions designed in conjunction with each of our partners to their exact specification.
Evaluating completely outsourced MPS, key considerations
Investment style – do the available strategies (active, passive or hybrid) align with your investment philosophy?
Control & Flexibility – Do you want to retain control over the investment process and overall mandate?
Platform availability – are MPS solutions available on the platforms that you currently utilise and prefer
Clarity of reporting – Outsourcing investment should benefit you and your client, with clear, accurate and timely reporting available at all times.
Performance and risk management – Is this consistent & aligned with your expectations. Can they operate within the risk management frameworks that you require.
Value – are the costs transparent & aligned with ensuring you deliver value to your clients.
Adviser support – Can they offer additional CPD qualifying educational content tailored to support advisers manage and grow their businesses.
Managing the transition process – Does the MPS provider really understand the requirements of your firm and offer a structured framework in place to support you every step of the way during the transition.
At 8AM Global, we take a collaborative approach, accommodating different allocation strategies, tactical positioning, and fund screening methods. Our customisable tools and processes provide clarity, structure, and efficiency for a wide range of investment approaches. As an MPS partner, you can select as much or as little of our support, reporting, data, oversight and service as you like, but we’ll always be there to reinforce and offer feedback and ensure the portfolios adhere to their mandates and continue to offer investors value.
If you are considering developing a Tailored MPS solution for your business, get in touch to discuss how we can assist.
This content is intended for financial professionals only. These are the author’s views at the time of writing and may be subject to change. This content is not intended to provide the basis for any investment advice or recommendation. Any forecasts, figures, opinions, tools, strategies, data, or investment techniques are included for information purposes only.
The information presented is considered to be accurate at the time of production and has been obtained from or based upon sources believed by the author to be reliable and accurate, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. Please visit our Regulatory Information and Terms of Use pages for more information.
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