What is a Partnership MPS?

The simple, transparent, multi-asset approach offered by Managed Portfolio Services (MPS) has made them increasingly popular among advisers in recent years – both in the wider industry and here at AJ Bell.

What’s perhaps less well known is that adviser firms can now have their own bespoke MPS range, managed by AJ Bell. We call these arrangements a partnership, because we work closely with each firm to ensure their corporate DNA or investment philosophy is fully reflected within a tailor-made MPS range

What are the benefits to clients of a bespoke arrangement?

• number of models;

• risk bands;

• proportions of active and passive exposure;

• domestic bias;

• ESG considerations;

• income bias;

• benchmark preference; and

• choice of name.

This level of customisation avoids much of the compromise inherent in traditional ‘one-size-fits-all’ MPS ranges, and allows you to create something truly relevant to your own clients.

What are the benefits to you – the adviser?

Having a Partnership MPS dramatically reduces your business risk, and creates many efficiencies that allow your business to grow.

Firstly, AJ Bell’s long-established framework, proven capability and extensive experience ensure we can deliver enhanced governance and careful oversight.

Secondly, we provide deep investment expertise – including detailed investment support and access to underlying share classes at a lower cost.

We can also take care of regular due diligence on the underlying funds, by meeting with fund managers to assess their performance and providing value for money assessments. It’s all about striking the right balance between our insights and your in-depth knowledge of your customers and their needs.

This efficient operating model helps you to deliver compliant investment solutions to clients, without diverting your focus from supporting them and growing your business.

How does it work?

Your Partnership MPS is designed, built and managed with your input at every stage. Initially, the range is devised within a number of parameters of your choosing, such as the objective, name and target total cost.

It’s then built around three main components – the long-term strategic asset allocation, the shorter-term tactical asset allocation, and then the specific funds and ETFs from our approved list.

The degree to which you get involved is entirely up to you. In any case, we’ll report formally to you in your quarterly review meetings, and produce monthly factsheets and quarterly reporting to keep your clients fully informed.

Would you like to know more?

Some financial advice firms have been enjoying the benefits of a Partnership MPS with AJ Bell for over five years now. If you’d like to learn more about what makes them choose – and stay with – this bespoke approach, please do get in touch with your usual contact.

Past performance is not a guide to future performance and some investments need to be held for the long term.