MARKETS & INVESTING

Steve Hunter Head of Business Development Momentum Global Investment Management

Model Portfolio Services ( MPS ) have seen increased demand over the last few years as advisory firms prioritise efficiency and devote more focussed time to client interactions . The market now poses an array of offerings for advisers to explore , all seemingly engaged in similar pursuits .

Navigating the diverse landscape of MPS requires careful consideration and evaluation . We have compiled a helpful checklist of key considerations that can help streamline the process when selecting an investment partner ( s ) for your business :

Clear investment philosophy and investment strategy .

What will the end state of your offering be ? And does it align with your firm ’ s values and client needs ? Can the provider clearly convey the underlying investment strategy , risk tolerance and asset allocation of the portfolios in a way that is easily shared with and understood by your clients ?

Performance and track record . This is arguably one of the most important elements , but it should not be considered in isolation or at the exclusion of other factors . Depending on the investor segment , needs can be very different , and the track record should be considered in context with the delivery of the outcome expected , not just the overall return . What level of risk was taken to deliver the performance ? What was the journey the investor took in terms of volatility ?

Client suitability . One size definitely does not fit all , so a reassessment of your investment client segmentation is a useful starting point . Confirm that an MPS is suitable for your client base and assess which segments this service could be suitable for . Who is this service likely to benefit ? Ensure that the service aligns with the risk profile , time frame and financial goals of your client .

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