Adding value to model portfolios

clock

By sticking to model portfolios, investors might be missing out on major opportunities for growth.

More and more often, the starting point for asset allocation advice for a client is a model portfolio selected from a range prepared in advance by a product provider or specialist investment advisory firm. That is perfectly understandable, and I fully appreciate the reasons why advisers take this route. It is said 90 per cent of returns come from asset allocation, while only 10 per cent from stock selection, but this is a retrospective statistic. Asset allocation is hellishly difficult, so relying on the brain power and number-crunching capability of a specialist is sensible. Moreover...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Watch Professional Adviser's Working Lunch with Schroders - Beyond the Pulse: Essential insights for financial advisers in 2025

Catch up on the discussion

Professional Adviser
clock 10 July 2025 • 1 min read
Investors 'do not understand' implications of private markets investing

Investors 'do not understand' implications of private markets investing

House of Lords Financial Services Regulation Committee looked at the issues

Linus Uhlig
clock 09 July 2025 • 1 min read
NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read