Like many financial planners RDR was something of a red herring. Instead what we have identified as crucial is getting the client proposition spot on. A solid and compliant investment strategy was at the core of that process. The Investment Coach Limited had previously been using an “in-house advisory” process predominately using passive investments. However, client rebalances were a real headache and due to differing client response times the performance of otherwise identical portfolios varied. We briefly explored taking on discretionary permissions but this would have created a bigger workload.
We did not want to completely outsource to DFMs as we felt we could not look the client in the eye and say we really understood the rationale behind their portfolio.
That was when we met PortfolioMetrix. A hybrid DFM. Hybrid in the sense that they provide discretionary management but The Investment Coach Limited sits on the Investment Forum meetings to represent our clients.
Mike Roberts and Nic Spicer both CFA charter holders, have been fantastically responsive in adapting their service and software front-end (Wealth Explorer) to assist our requirements. Clients often comment on the quality of the reporting this system generates.
But when all is said and done the overriding requirement is to have the tightest risk management available with enough customisability for each client so that “shoe horning” is demonstrably avoided. Customisability comes in the form of a slider between active and passive management, slidable time horizons and a dynamically changing asset allocation pie chart that wows the client.
Their track record demonstrates their ability to control risk across the frontier, ensuring the work we do around suitability is not undone by poor implementation. This helps us to provide consistent outcomes to our clients no matter where they are on the risk/reward spectrum.
Andrew Reeves, FPFS, FIFP, Chartered Financial Planner & Certified Financial PlannerCM