Would a Tailored MPS solution help scale your business?
We understand that financial advisers are always seeking ways to provide better service to their clients, streamline operations, reduce risk and differentiate themselves in an increasingly competitive market. Partnering with a DFM specialising in Tailored Model Portfolio Services (TMPS) can help achieve these goals.
At 8AM, as MPS specialists, we’ve been designing, building & managing tailored MPS for nearly a decade. Our team offers your firm a focused, fully bespoke offering – building a model portfolio suite to your exacting specifications.
How can 8AM help advisers build a tailored MPS?
A Tailored MPS is a customised investment management service that allows advisers to tailor portfolio strategies to align with the unique needs, preferences, and objectives of their existing and prospective clients. Unlike off-the-shelf solutions, Tailored MPS allows any adviser to provide an investment solution perfectly aligned to their chosen investment methodology and advice culture or to service the needs of specific client segments.
What are the key benefits of a tailored MPS?
- Enhanced client relationships
Every one of your clients has unique goals, risk tolerance levels, and values. Tailored MPS enables advisers to offer an approach to portfolio management that is wholly joined up with your offering, re-enforcing your advice model and acting as a differentiator against competitors. Advisers can strengthen client trust and loyalty by offering an MPS solution that delivers consistent returns that are aligned with client expectations.
- Streamlined operations
Managing individual client portfolios can be time-consuming, operationally complex, costly and risky. We work through your requirements regarding the most appropriate platform and instruction management SLA for your needs. These tools allow us to manage multiple portfolios efficiently, ensuring accuracy, compliance, and timely reporting while freeing time for client-facing activities.
- Reduced costs
Establishing a tailored MPS via 8AM can help cut the costs of the OCF. We can do this by identifying and accessing cheaper share classes for funds held, identifying potential portfolio coverage redundancies, and introducing passive funds where appropriate to prevent the compromise of the integrity and concentration of an active strategy.
- Scalability
Scaling your business while maintaining a high level of client engagement and personalisation is challenging. Tailored MPS strikes a balance by extending your selected investment methodology at scale. Advisers can leverage our expertise in portfolio construction, rebalancing, market analysis, and the outsourcing of crystal-clear reporting, allowing you to focus on your client engagement.
Typically, we build 5-10 defined models for an adviser firm to accommodate various client risk outcomes.
- Differentiation in a competitive market
The financial advisory space is crowded, with many firms using similar investment solutions from larger investment houses. By incorporating a Tailored MPS into your client offering, you can continue differentiating yourself from ‘me too’ competitors down the road!
- Access to expertise without restriction
As a specialist MPS designer and manager, 8AM consists of a team of investment professionals from across the industry who bring a wealth of knowledge and resources to the table. By leveraging expertise in investment management, financial advice, product design, data control and analysis, adviser tool development, and exceptional client service, we offer advisers tailored Model Portfolio Services designed from the ground up to meet their clients’ unique needs.
As an adviser, you can partner with this team of experts to create sophisticated, tailored strategies without needing to maintain your own in-house team of investment analysts. This access enables smaller firms to compete on a level playing field with larger organisations.
We are truly collaborative and can accommodate vastly different approaches to allocation, tactical positioning, and fund screening. Our tooling and processes can be customised (or built to order) to provide greater clarity, structure, and efficiency for almost any existing investment process.
- Integration of ESG investing
Today’s clients are increasingly interested in aligning their investments with their values. We can incorporate ESG factors into portfolios, allowing you to respond to this increase in demand, meet client expectations and foster long-term multi-generational relationships.
- Remove regulatory headaches
If you are one of the many firms that made the bold and efficient choice to run your own proprietary advisory portfolios for clients, you’ll be well aware of the regulatory pressures that are being focused on you to operate as a product manufacturer – regardless of your permissions.
At 8AM, we can automate the oversight and reporting requirements to allow you to continue to offer the same great investment service to your clients, with the added benefit of outsourcing the burden of data monitoring and aggregation to us to create automated custom reporting, allowing you to fulfil your role effortlessly.
Conclusion
Tailored MPS offers a powerful tool for financial advisers aiming to deliver personalised, high-quality service. With an experienced, specialist MPS provider, you can not only meet but exceed client expectations, fostering trust and driving business growth.
If you’re a financial adviser seeking alternative MPS solutions for your clients, exploring Tailored MPS might be the next step in achieving your professional goals, speak to our team of experts today to discover how we could help you.
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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