Insourcing (also known as tailored models) is being adopted as a CIP by many financial advice firms.
Insourcing refers to an advice firm working together with with a discretionary fund manager (DFM) to build a range of models that are unique to their firm and branded in their name. This is materially different from the alternatives of "white-labelling" or "re-badging" which is just an advice firm putting their logo on a DFM's existing MPS range.
We are excited to observe how the concept of Insourcing is gaining momentum across the industry. According to a recent in-depth report by Citywire, Insourcing has emerged as "the number one trend for MPS in 2024".
PortfolioMetrix was recently asked by the Personal Finance Society (PFS) to do a teach-in for their members on Insourcing.
Learn more from our recent webinar for the PFS
PMX Press Features on Insourcing
Our insights and expertise on the topic have also been highlighted in press articles throughout the year. A few highlights below
"How Insourcing Portfolios are Ticking Every Consumer Duty Box" - Money Marketing, May 2024
Money Marketing explores the ways Insourcing aligns with the new Consumer Duty regulations. The article emphasises how insourced portfolios can offer greater transparency, tailored advice, and enhanced client outcomes. By managing investments in-house, advisory firms can ensure a more personalised and compliant service for their clients.
"Insourcing is 'Evolution Not Revolution' for Advice Firms" - Professional Adviser, March 2024
Professional Adviser explores the gradual yet impactful shift towards Insourcing within advisory firms. It showcases how the transition for end-clients can be done smoothly which helps keep them composed. It highlights how firms are integrating Insourcing strategies to enhance control over investment decisions, reduce costs, and improve client satisfaction.
"Insourcing - Not All Propositions are Created Equal" - Professional Adviser, January 2024
This piece from Professional Adviser highlights that Insourcing solutions available in the market differ enormously (as per comments on re-badging above) so advice firms must carefully assess the offerings before committing. A good understanding of an advice firm and the needs of their clients from the DFM is crucial combined with a lot of upfront (and ongoing) work to build and maintain models that are genuinely unique for that advice firm.
"Why Finding the Right Insourcing Partner is Crucial to Success" - Professional Adviser, February 2024
Professional Adviser focus on the importance of selecting the right Insourcing partner to achieve optimal results for clients. They outline the key criteria for evaluating potential Insourcing partners, such as their credentials and experience, risk mapping expertise and alignment with the firm’s goals and culture. The article stresses that a strategic partnership in Insourcing can significantly boost an advice firm's performance, ensuring robust portfolio management, enhanced brand value and superior client service.
Stay tuned for more updates and insights. If you have any questions or would like to explore how PortfolioMetrix can support your business, please contact engagement@portfoliometrix.co.uk.
