As a part of our WealthTech Insight Series (WTIS) and in partnership with Financial Simplicity and IAWMC, we are pleased to present a new whitepaper focused on the challenges of managing model portfolios on multiple platforms.
This whitepaper summarises a recent UK roundtable led by Financial Simplicity, collecting insights and opinions from a group of UK Discretionary Fund Managers (DFMs). It looked at the issues with running model portfolios over multiple platforms and how these platforms, asset managers, and IFAs need to work together to develop better processes and controls.
The roundtable featured some 25 participants. On average, participants within the model portfolio investment team had between four to five people. There was an average of five people to support on compliance, and the number of original model portfolios under management averaged around 90.
The conversation revolved around the evolution of model portfolios and the resulting complexity in managing various processes around them - particularly rebalancing. Overall, the feeling was that existing complexities were deep-rooted and had been problematic for some time. There is a disconnect between the systems in place to manage the model portfolios and what they do versus what they need to be capable of doing. This is an issue given that DFMs want to use model portfolios more but find that their needs are only partially met or not met at all.
This research is part of The Wealth Mosaic’s WealthTech Insight Series (WTIS), an ongoing and developing research process mixing online surveys and interviews. It focuses exclusively on technology in the wealth management sector across the world. Rather than a one-off research process, the WTIS will seek to build an ongoing program of research among wealth managers of different types across the world on a broad range of technology and related topics, building up an aggregated knowledge base of both qualitative views and perspectives as well as quantitative data points.
Interested in finding out more? You can read and download the whitepaper here
Partners in research
Financial Simplicity
Financial Simplicity is a global specialist in portfolio control systems. We help wealth and investment managers achieve better experiences and business through the provision of a specialist digital platform. The portfolio co-pilot control systems in our platform allow our clients to deliver their investment propositions on a fully personalised and bespoke basis at scale. We believe this lies at the core of what these groups need to achieve in order to maintain their business and grow within acceptable risk parameters.
How do we do this? We combine an award-winning platform, machine-learned algorithmic IP, and the skills to help investment and wealth management firms understand business improvement opportunities, and then teach them how to deploy these techniques within their business. Find out more at www.financialsimplicity.com
IAWMC
IAWMC is a niche management consulting firm providing services to wealth managers, private banks, family offices, asset managers, software vendors and service providers such as third-party administration firms. We differentiate ourselves from our peers and competitors by providing pragmatic and cost-effective consulting services to our clients by utilising our broad and deep knowledge of the financial services industry in which we operate. Find out more at www.iawmc.com
