Managed Portfolio Services – Official Defaqto Research Report
Defaqto have produced an Official Research Report for Financial Advisers on Managed Portfolio Services (MPS). Sometimes called Model Portfolios, the research has been commissioned by Brooks Macdonald Asset Management and reflects the growth in popularity of packaged Discretionary Solutions as an Outsourcing Solution for Investment Advisers.
The report looks at all aspects of MPS and underlines the following key areas which Advisers should research and use for in-depth comparison:
- 1) Structure
- 2) Investment Process
- 3) Key Personnel
- 4) Benchmarking
- 5) Performance
- 6) Access
- 7) Fees & Charges
The research focus is primarily on the notion of Benchmarking and Performance when reviewing or comparing MPS Vehicles.
Unlike Bespoke Discretionary Portfolios there will be limitations to the choice an investor has on the benchmark returns that a fund will aim to meet. It should be noted that MPS Products tend to have four or five Risk Banded Funds and some variety in the Benchmark can be built in, but by and large they follow the same investment focus. The ability of the Investment Manager to meet such a benchmark at the minimum level of risk is seen as the key to a strong product.
MPS use is growing significantly as they allow IFAs with multiple Investment Clients to access the skills and resources of Discretionary Managers at affordable cost levels. Traditionally DFMs have high minimum investment amounts to accommodate the bespoke nature of their work, this removes many IFA Clients out of the equation. MPS is designed to accommodate clients in the £10,000 - £100,000 Investible Assets range.
Competitive products are also growing as the need to outsource investment research and primary decision making grows. Such products include, Risk Rated Portfolios, Governed Portfolios, Unitized Discretionary Funds, Multi-Manager funds and the IMA Balanced Managed Sector.
Click Here to Download a Free Copy of the MPS Evaluation Report from
Defaqto Adviser
