Perhaps its time to take another look?
Author: Paul Hogg, 8AM Global
In a profession built on trust, relationships, and sound judgment, it is no surprise that some Financial Advisers feel hesitant about embracing model portfolio services (MPS) – especially those that are heavily data-driven. After all, you have worked hard to build a reputation based on personalised client service. Why risk that with something that seems overly ‘automated’?
But here’s a thought – the right MPS doesn’t compromise your client relationships or their perception of ongoing value. It can enhance both.
Let’s reframe the conversation…
You are not giving up control, you are gaining insight
‘Data-driven’ MPS solutions tend to use a great breadth of information to make consistent and contextualised decisions. These portfolios are not a ‘set and forget’ tool, they are built using robust analytics and are usually overlaid with the professional experience and judgement of investment experts.
Clients expect transparency and evidence
Many clients are becoming increasingly data-savvy. They are used to seeing performance metrics, fees, and comparisons at the click of a button. A data-driven MPS allows you to respond to that demand for transparency with confidence and clarity.
This means that instead of vague reassurances of oversight, tenure and quality of abstract individuals, you can provide tangible, evidence-backed answers. This approach builds trust rather than diminishes it.
Focus on what clients truly value
Let’s be honest, hours spent fund picking and rebalancing could be better spent elsewhere. Delegating investment management to a robust MPS does not mean you are ‘doing less.’ It means you are focusing on what matters to clients and the regulator – goals-based financial planning, helping educate your clients on their finances and navigating them through the various stages of their lives.
The more you automate the technical aspects of financial planning, the more you can focus your energy to elevate the personal service you offer.
Consistency is a competitive advantage
When portfolios are constructed based on clear, data-driven principles, you reduce the emotional (and sometimes inconsistent) decision-making that can creep into investing. That consistency is something clients deeply appreciate especially at times when markets are volatile.
A model does not panic, it does not chase performance. That steadfast consistency can become a strong pillar in your client relationship – whether you explore behavioural finance principles with your clients or not.
You are future-proofing your business
The next generation of clients will expect tech-driven, scalable, and data-informed advice. They are digital natives, used to seamless experiences and real-time insight. Advisers who embrace this now, should be better positioned to support these clients in the future and retain assets through intergenerational transfers.
What’s next?
If you have dismissed MPS in the past, the 8AM Global team invite you to hear what has changed. The technology is smarter, flexibility greater and the support is stronger. And most importantly, the outcomes—for both advisers and clients—speak for themselves. As one adviser in our recent survey told us;
“Pleased with the performance. Ease of administration. The information available both to us and clients about the portfolios, process”
Find out why they think that way. Data-driven does not mean impersonal. It means informed. Let us have a look at how data driven MPS could help you.
Why not schedule a quick chat now?
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.
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