Tag: Portfolio Management Considerations

The Wonders of Model Portfolios

So many firms are bringing in these things called ‘Model Portfolios’ and for some, they look like a new list of approved investments for clients, often in different proportions for different risk appetites. So what is the big deal? Well the big deal is that to be used properly, 2 key things must happen: Authors…
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Managed Accounts and Practices vs Businesses

There are some increasingly clear lines being drawn in the rapidly growing world of managed accounts. One of them relates to whether wealth managers are practices or businesses. “What ?” you may ask, or “Why does it matter ?”. Let me try and explain:  First of all distinction between a practice and a business. For…
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Skills in going from professional sellers of investments to professiona buyers

With changing regulation around the world either in place, or moving to be in place quite soon, there is a fundamental shift occuring in the wealth management industry. This shift in many ways is that people who made their living from the selling of investment products (and were paid product commissions to do so), now…
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The Model Portfolios Journey to Managed Investments 2.0

A sneak preview on a paper that I am writing about the journey that the industry is on kicked off by the use of model portfolios….  Below is a slide that I am using quite a bit to highlight that model portfolios are not the end game, but just the start of what I call…
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Supply Chains vs Stacks

One of the key differences we are finding when helping firms put together their new era of ‘client centric’ propositions is that the design of the proposition and the components that form such are taking a very different form, in the form of ‘Stacks’ as opposed to ‘chains’. They are characterised by the fact that…
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Are financial consumers being held hostage?

Consumers are supposed to be the new royalty in any service industry. In the financial services world, plenty gets written about how important the consumer is, how powerful, how discerning but how many business models are really built around the consumer? Far from being more free and able to exercise all those choices one sees…
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What is proposition enablement and why do we need it ?

Quite a few people are asking me about proposition enablement. What is it and why do we need it ? Well the answer really lies in the answer to the questions: ‘what do you do and why should you be paid for it ?’, and the fact that many wealth management industries around the world…
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‘DIY’ model portfolios on the increase – FTAdviser.com

This is a really topcial article in much of my work at the moment and highlights the further industry supply chain ‘pirating’ going on: Players in the supply chain (in this case, advisors) are doing more and more to maintain relevance and margin in their businesses. Are we entering an era in which there is…
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The importance of systemised rebalancing

Article in IFAOnline today here about how systemised rebalancing may not be treated as requiring discretionary authorities by advisers.  This, I think, provides some insight into regulatory thinking.  It  also raises quite a few questions, some of these being: Q) Who defines the rules for sysemised rebalancing? And, what is acceptable? Q) What happens if…
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Centralised or Decentralised Investment Propositions

Much talk over here at the moment in the UK about centralised investment propositions. In short, this appears to be about operating a centralised process of investment management for a broad range of clients: these are most often segmented in a sensible manner allowing for risk tolerance and investment timeframe. However, running contrary to this…
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