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Burdens Article

Relieving the burden of running model portfolios

Running your own model portfolios is challenging and time consuming:

  • Research
  • Portfolio construction
  • Writing to clients
  • Investment selection
  • Market monitoring
  • Chasing clients for responses
  • Rebalancing portfolios across multiple platforms
  • Selling down
  • Shifting risk profiles
  • Still chasing clients for responses

And as demand rises, the operational burden will too.

The operational challenges

We’ve talked to advisers. And we’re consistently hearing the same thing – operational burden is a growing problem. We’ve learnt that most advisors who run their own model portfolios can often have 20 or more holdings. Actively having to monitor, document and rebalance these positions can grow rapidly out of control; it’s a time-consuming process that involves frequent client communication, extensive market research and exhausting administrative functions.

For those managing their model portfolios on multiple platforms, this task becomes an even bigger headache, and one that can distract from other important areas of the business – like talking to clients!

It can be much more cost and time effective to outsource those functions to an investment partner such as 7IM, who have a team of dedicated experts on hand ready to take care of all these tasks.

How 7IM can take the weight off your shoulders

At 7IM, we run our model portfolios across 15 different platforms. We’ve learnt the quirks and challenges of each – which takes the longest, which needs extra information, which doesn’t have certain holdings – and we have a team of 12 dedicated to running our Model Portfolio Service offering. Our discretionary permissions also remove the need to contact clients for every change in holding, ensuring alignment across all client accounts and more importantly consistency in client outcomes.

Partnering with a dedicated model portfolio provider, such as 7IM, could see you relieve yourself of the burdens of carrying out investment research, portfolio construction, rebalancing and fund due diligence, allowing you to spend more time on what you do best – advising and planning for your clients. Find out more about our Partnership Model Portfolio Service.

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10 years of paddling; under the surface of model portfolios
From the challenges of the operational burden to narrowing down the investments universe, we sat down to talk through the most common difficulties faced by advisers when it comes to managing model portfolios, and how we manage these ourselves.
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