Managed Portfolio Services Research Annual Report | IFA Magazine | August 2020

For today’s discerning financial and investment professional

ANNUAL REPORTS

MANAGED PORTFOLIO SERVICES RESEARCH

By Tony Catt Compliance Consultant | TC Compliance Services This report is suitable for professional advisers only and not for retail investors.

Managed Portfolio Services Due Diligence Research

Contents Acknowledgements and Thanks

6

Introduction

7

Is now the right time to be outsourcing?

8

MiFID II & PROD rules

10

Distribution of products and investment services

10

Obtaining information from manufacturers

10

Centralised Investment Proposition (CIP)

10

Ensuring a recommendation to switch existing investments into the CIP is suitable

11

Client Segmentation

11

Suitability

11

Advisers

12

Controls and oversight

12

Identifying and managing conflicts of interest

12

Management information

12

Agent as client

13

Reliance on Others

13

Agents as Client or Reliance on Others – how do advisers choose?

13

VAT and MPS

14

Historic Performance of Asset Classes

15

Environmental, Social and Governance (ESG) Investment

16

Managed Portfolio Services

17

MPS on platforms

18

MPS Charging Structures

19

Defaqto Data comparisons

25

AKG DFM Financial Strength Ratings

27

Defaqto DFM Service Ratings 2020

28

Defaqto Risk Focused Fund Families – Diamond Ratings

29

Defaqto Risk Targeted Fund Families – Diamond Ratings

30

Synaptic Risk Rating Service

31

DFM/MPS Press coverage

44

MPS in the UK

45

Clever Adviser

45

8AM GLOBAL

47

Aberdeen Standard Capital

48

AJ Bell

50

Beaufort Investment Management

51

Blankstone Sington

55

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Managed Portfolio Services Due Diligence Research

Brewin Dolphin

57

Brooks Macdonald

58

Canaccord Genuity Wealth Management

61

Cazenove Capital

63

Charles Stanley

65

City Asset Management

67

Close Brothers Asset Management

68

Copia Capital Management

69

Cornelian Asset Managers

72

DB Wood

73

EBI Portfolios

75

EQ Investors

77

FE Investments

79

GAM

80

Garraway

81

Hawksmoor Investment Management

82

HSBC Global Asset Management

84

IBOSS

86

Invesco

87

JM Finn

90

Jupiter

92

King & Shaxson

93

LGT Vestra Wealth

95

Liontrust

97

Momentum

99

Morningstar

100

Newscape Capital Group

102

Ninety One

103

OCM Wealth Management

104

Octopus Investments

105

Old Mutual Wealth

106

PortfolioMetrix

107

Premier Miton

109

Psigma Investment Management

111

Quilter Cheviot

113

Rathbones

117

Rowan Dartington

119

Royal London Asset Management

120

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Managed Portfolio Services Due Diligence Research

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Sanlam

121

Sarasin & Partners

124

Scottish Widows

126

7IM

128

Smith & Williamson

132

Sparrows Capital

134

Tatton Investment Management

135

Tilney for Professionals

138

Tribe Impact Capital

140

Walker Crips

142

Waverton Investment Management

143

Wellian Investment Solutions

145

Whitechurch Securities

147

Glossary

149

Disclaimer

158

Managed Portfolio Services Due Diligence Research

Acknowledgements and Thanks I would like to acknowledge all the people who have provided information to enable me to produce this report.

Thank you to AKG for providing the up to date DGM Financial Strength Ratings figures.

A special thank you to those individuals who spent time speaking with me and also sending through information that is included in this report.

8AM Global/Clever Adviser Aberdeen Standard Capital AJ Bell AKG Beaufort Investments Blankstone Sington Brooks Macdonald Canaccord Genuity Cazenove Charles Stanley Charles Stanley City Asset Management Close Brothers AM Close Brothers Copia Capital Copia Capital Cornelian EBI EQ Investors FE Investments Garraway Hawksmoor HSBC Invesco JM Finn King & Shaxson Morningstar Newscape Capital Group OMW PortfoloMetrix Psigma Psigma Quilter Cheviot Rathbones Rowan Dartington Royal London Sanlam Sarasin Seven IM Smith & Williamson Sparrows Capital Tatton IM Tilney Tribe Impact Capital Walker Crips Waverton Whitechurch Securities

Ash Weston James England Dharmesh Mistry Matt Ward Shane Balkham Neil Blankstone Richard Kelly Sean Taylor Daniel Curtis Jeremy Hippolite Matthew Keen Chris Gillam David Sells Sebastian Ladimeji Tony Hicks Keith Furniss Kevin Sturla Ashley Owen Damian Lardoux Josh Pedlar Yannis Katsis Jill Gill Joe Rowell UK Distribution team Luke Powell Peter Thompson Chris French Daniel Mermina William Bell Dave Chessell Stewart Howard Mike Myers Brian Donald Arron Silk Chris Baker Robert Horsburgh Sales Support Team Zoe Cossins Simon Church Matthew Finch John Bennett Justine Randall Andrew Tompson Christopher Toy Rachel Blythe Mark Barrington Phil Miller

ash.weston@8amglobal.com james.england@aberdeenstandard.com Dharmesh.mistry@ajbell.co.uk matt.ward@AKG.co.uk shane.balkham@beaufortgroup.co.uk n.blankstone@blankstonesington.co.uk Richard.kelly@brooksmacdonald.com sean.taylor@canaccord.com daniel.curtis@cazenovecapital.com jeremy.hippolite@charles-stanley.co.uk matthew.keen@charles-stanley.co.uk Chris.Gillam@city-asset.co.uk dsells@teamspirit.uk.com Sebastian.ladimeji@closebrothers.com tony.hicks@copia.capital.co.uk keith.furniss@copia-capital.co.uk kevin-sturla@cornelianam.com ashley.owen@ebip.co.uk Damien.lardoux@eqinvestors.co.uk josh.pedlar@fefundinfo.com Yannis.katsis@garrawaycm.com jill.gill@hawksmoorim.co.uk joe.rowell@hsbc.com salesadmin@invesco.com luke.powell@jmfinn.com peter.thompson@kasl.co.uk chris.french@morningstar.com d.mermina@newscapegroup.com William.bell@omwealth.com dave.chessell@portfoliometrix.co.uk stewart.howard@psigma.com mike.myers@psigma.com Platforms@quiltercheviot.com arron.silk@rathbones.com client.services@rowan-dartington.co.uk Robert.Horsburgh@rlisales.com salessupport@sanlam.co.uk zoe.cossins@sarasin.co.uk simon.church@7im.co.uk matthew.finch@smithandwilliamson.com john.bennett@sparrowscapital.com justine.randall@tattonim.com andrew.tompson@tilney.co.uk christophert@tribeimpactcapital.com Rachel.blythe@wcgplc.co.uk mbarrington@waverton.co.uk phil.miller@whitechurch.co.uk

07837 560571 07703 695277 0345 8399060 01306 876439 0345 241 5376 0151 236 8200 0161 861 4133 020 7523 4881 07469 021333 07989 704036 07581 415504 07956 291366 020 7861 3835 07536 046955 07703 189164 07875 734049 07826 915185 01922 472226 07867 451612 0207 534 7628 07500 945094 01293 454708 07747 269510 01491 417600 020 3207 3687 07936 368474 07885 552990 07854 005797 07970 088285 07850 307670 07887 826402 07721 129885 07889 718492 07901 632105 01179 330000 0345 60 40 800 0117 453 5470 07980 702758 07780 232325 07786 113988 07721 537081 07393 766993 07769 880404 020 3745 5571 01904 544338 07525 965351 07880 385457 5|

Managed Portfolio Services Due Diligence Research

Introduction I work as an independent compliance consultant working mainly with IFA firms around London and the South-East. I have several firms for whom I undertake different duties. I have previously undertaken platform research and distributed it among my client firms.

One of the firms asked me to undertake research on MPS as they had been running their own portfolios and were looking to move to a thirdparty arrangement.

I looked around the market for reports and found Defaqto, the Langcat and Next Wealth reports. The first two were commissioned by OMW WealthSelect and unsurprisingly focussed on that. When I looked at the reports, they had a core of MPS providers but they each had some that did not appear on the other reports. I went onto FE Analytics where I found a lot more. But none of them had as much detail as I wanted or breadth of providers. So, I thought that I would just have to do it myself.

This research is to show the Managed Portfolio Services that are currently available for Independent Financial Advisers to use for their clients’ investment strategies.

There are many providers in the market offering Managed (Model) Portfolio Services (MPS). It is an extremely competitive market. Many Discretionary Fund Managers (DFM) offer managed portfolios for investors who want their money managed professionally, but do not have the size of investment that would warrant the expense of a bespoke discretionary fund management service, which is used for High Net Worth (HNW) investors.. Rather than miss out on the Mass Affluent (MA) market of people who want to invest, but not the same magnitude, the Managed Portfolio Services have been introduced.

I am looking to provide information on a wider range of providers to show how any Managed Portfolio Service chosen by a firm is competitive in the market and why it may be chosen to suit the clients of the advising firm. If there are errors in this report, please advise me and I will correct them.

The more I looked into the MPS, the more I realised that there are a lot of very good practitioners in the field. All apparently with their own views on investment and how much better they were than their competitors.

This report can only be considered to be a snapshot of the market in July 2020. Whilst I have a wider range of providers than any other report that I have seen on MPS providers, there are still a lot of providers that are not in this report, simply due to the numbers available. If there are any providers that you would like included in future editions of this report, please advise me.

It just proves that there is an investment strategy to suit every investor. They just need to be discovered and identified.

With all these managed portfolio services providers available, it is a mystery why any financial planning firm would want to devote so much of their valuable time running their own portfolios.

Tony Catt Tony Catt Compliance Consultant TC Compliance Services Mobile: 07899 847338 Email: info@tonycatt.co.uk

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