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

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read
2025 reflections: How strong companies trumped politics

2025 reflections: How strong companies trumped politics

Fears of an AI market bubble persist

Ryan Hughes
clock 23 December 2025 • 3 min read
What does 2026 hold for investment?

What does 2026 hold for investment?

‘The disruptors of yesterday are now the establishment’

Jen Frost
clock 17 December 2025 • 3 min read