Model Portfolios

What does everyone use in terms of model portfolios?

Do you go down the Multi-Asset fund approach so the re-balancing is done automatically or do you select your own funds based on different asset classes?

I'd be interested to hear everyones thoughts :)


  • benjaminfabibenjaminfabi Moderator
    edited May 13

    Almost all the planners I work with use in-house low cost passive portfolios, usually 5 or 6 funds. For smaller fund values (like JISAs) they'll use Vanguard Lifestrategy. Mostly these are bought in from a third party - see Cormorant Capital and Albion Strategic Consulting for examples.

    A couple use EBI portfolios (basically a DFM version of the above), so you don't have the expense of the external consultant (the client pays directly through the DFM fee). This also reduces some mifid reporting headaches. See also Parmenion where you can have the custody bundled in too.

    I believe that if you are an advisory firm still picking active funds and charging % of AUM for 'running the money' then your days are well and truly numbered.

    Benjamin Fabi FPFS
    Chartered Financial Planner 
  • In your example, you appear to be saying that IFA's think they can do a better job than Vanguard?

  • @AndyRichards we have a large in house investment team who build/run our models. We use discretionary powers to implement and rebalance quarterly. Having people in-house with these specialist skills mean we can do this and have full time researchers (both Asset Allocation level and Fund level).

    Chartered Financial Planner FPFS APP Chartered MCSI
    Head of Technical at EQ Investors

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