Custom Portfolios.
We help you research, design and build your multi-asset portfolios
Why Custom Portfolios are so important
Model Portfolios are core to advisers' Centralised Investment & Retirement Proposition.
Rather than using ready-made MPS solutions that are designed for the entire UK markets, we help you design, build and manage the portfolio ranges you want for firm to offer your clients.
Elston helped pioneer "insourcing"
We help financial advisers analyse, research and develop multi-asset model portfolios as part of an "insourcing" service.
What is outsourcing?
Some firms "outsource" the control of their investment proposition to a third-party MPS provider.
This means ceding control of the investment proposition to selected discretionary manager.
They do this to benefit from the operational efficiencies of MPS and to benefit from the additional resource MPS providers should have to navigate the markets.
What is insourcing?
We believe it makes more strategic sense to "insource" investment expertise to create their "own" MPS solution.
Insourcing means getting external support for the adviser's own proposition, thereby retaining control.
the operational benefits of moving to a MPS service, whilst ensuring advisers retain control of their proposition and their client base.
Given many of the larger discretionary MPS providers have large financial planning arms, we think this creates actual or perceived risk of losing their higher value clients to the discretionary provider.
Why are adviser firms turning to "insourcing"?
Adviser firms are turning to insourcing for three key reasons
1. To retain control of their proposition - advisers have their own vision and strategy of how best to deliver investment solutions. We help those advisers deliver that strategy in the format they require.
2. To retain control of their customer experience - the advisers' brand is top of mind for consumers: by delivering excellent customer experience via an adviser-defined Custom MPS solution, adviser firms are better positioned to retain customers.
3. To retain control of the value chain - advisers using ready-made solutions are price-takers. By contrast, advisers tendering Custom MPS mandates are price-setters. This enables adviser firms to shape the overall structure of their value proposition.
What formats are available for Custom Portfolios?
Custom Portfolios are deliverable for advisers to offer as Advised Custom Portfolios or Managed Custom Portfolios.
These different formats can be aligned to suit end client needs, and to align with your permissions and operating model.
Arrange a Consultation so we can better undertand your needs.
Model Portfolios are core to advisers' Centralised Investment & Retirement Proposition.
Rather than using ready-made MPS solutions that are designed for the entire UK markets, we help you design, build and manage the portfolio ranges you want for firm to offer your clients.
Elston helped pioneer "insourcing"
We help financial advisers analyse, research and develop multi-asset model portfolios as part of an "insourcing" service.
What is outsourcing?
Some firms "outsource" the control of their investment proposition to a third-party MPS provider.
This means ceding control of the investment proposition to selected discretionary manager.
They do this to benefit from the operational efficiencies of MPS and to benefit from the additional resource MPS providers should have to navigate the markets.
What is insourcing?
We believe it makes more strategic sense to "insource" investment expertise to create their "own" MPS solution.
Insourcing means getting external support for the adviser's own proposition, thereby retaining control.
the operational benefits of moving to a MPS service, whilst ensuring advisers retain control of their proposition and their client base.
Given many of the larger discretionary MPS providers have large financial planning arms, we think this creates actual or perceived risk of losing their higher value clients to the discretionary provider.
Why are adviser firms turning to "insourcing"?
Adviser firms are turning to insourcing for three key reasons
1. To retain control of their proposition - advisers have their own vision and strategy of how best to deliver investment solutions. We help those advisers deliver that strategy in the format they require.
2. To retain control of their customer experience - the advisers' brand is top of mind for consumers: by delivering excellent customer experience via an adviser-defined Custom MPS solution, adviser firms are better positioned to retain customers.
3. To retain control of the value chain - advisers using ready-made solutions are price-takers. By contrast, advisers tendering Custom MPS mandates are price-setters. This enables adviser firms to shape the overall structure of their value proposition.
What formats are available for Custom Portfolios?
Custom Portfolios are deliverable for advisers to offer as Advised Custom Portfolios or Managed Custom Portfolios.
These different formats can be aligned to suit end client needs, and to align with your permissions and operating model.
Arrange a Consultation so we can better undertand your needs.
Custom Portfolios (Custom MPS)
If you are a UK adviser and would like to watch an introductory video, please Arrange a Consultation
How to build a Custom Portfolio range
Our Custom Portfolio investment design process
1 Focus on Objectives & Constraints
Understand return objectives, risk constraints, time horizon, and both base and reporting currency to develop an investment strategy for a given mandate, designed for your Target Market/
2 Design appropriate Asset Allocation
Asset allocation is the main driver of the level and variability of portfolio returns. Back-test and stress-test the strategy. Consider tactical asset allocation parameters and regimes.
3 Implement efficient Portfolio Construction
Construct the portfolio based on given preferences, and with regard to platform availability, Liquidity profile, ESG risks and Value For Money considerations. Provide ongoing analysis, monitoring and reporting.
Launching a discretionary MPS service?
We also provide support to adviser owned discretionary managers running their own model portfolios.
We help with 1) asset allocation research, 2) fund research, 3) portfolio analytics (including liquidity analysis and ESG analysis) as part of our analytics, factsheets and reporting support.
We are proud to be supporting DFM solutions such as:
Elston Portfolio Management
Magnus (part of Wren Sterling)
...and three other adviser-owned DFMs
We help with 1) asset allocation research, 2) fund research, 3) portfolio analytics (including liquidity analysis and ESG analysis) as part of our analytics, factsheets and reporting support.
We are proud to be supporting DFM solutions such as:
Elston Portfolio Management
Magnus (part of Wren Sterling)
...and three other adviser-owned DFMs
Looking for a ready-made solution?
For firms that want a straightforward turnkey solution, find out more about Elston's ready-made model portfolios.