September 24, 2023

Be Aware of Bespoke Investment Management

Investment Management
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The UK wealth management market today has an AUM of more than £900 billion. Third-party financial advisers account for 25% of AUM, and managed portfolio services (MPS) on platforms continue to be one of the industry segments with the strongest growth rates.

The decreased cost is one of the MPS’s well-known advantages. Customized portfolios are subject to VAT, but MPS are not. Investors frequently belong to the same investment plan since it is less expensive for wealth managers to manage and frequently more effective than a custom portfolio.

Low cost can be advantageous in a highly competitive industry, however the bulk of platform MPS solutions are held in open-ended funds. Many are regarded as typical and frequently available.

MPS are susceptible to commoditization since it can be challenging to distinguish between and access more specialised funds, particularly ETFs and investment trusts. 

Visit at pmw.co.uk that provides Investment Management Service in a cost-effective manner and offer advisory solution for clients who wants to invest between £100,000 and £200,000.

Both individuals and trustees who need assistance about a new investment or an evaluation of their current investments can use this service.

Detailed recommendations for either a new portfolio or modifications to an existing portfolio that they believe will best help you reach your financial objectives will be provided at the initial session.

Due to the recent market volatility, many clients have realised the benefits of having a custom actively managed portfolio, which provides them with a strategy and well-diversified investment portfolio that is truly suited to their needs.

As an advisor, you will work with an investment manager who has the freedom to manage the portfolios of your clients as they see fit, within the constraints of their individual investment goals and the level of risk that you as their adviser have determined is suitable for them.

The investment manager may also take into account a client’s tax situation while managing investments within tax-efficient structures as needed.

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Clients have experienced the advantages of a continuous active management strategy, which allows for swift portfolio adjustments to reflect changes in the markets or a client’s circumstances.

Investment
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Who may be interested in a bespoke portfolio?

A customised portfolio may be appropriate for clients who want to exclude industries that don’t reflect their beliefs or invest in areas of interest.

Investment trusts can be helpful in a portfolio if you have certain income needs. Since they are closed-ended funds, their structure might be advantageous when gaining access to specialised markets like real estate and infrastructure.

Additionally, investment trusts have the ability to retain 15% of their annual revenue annually, which is a significant benefit for clients looking to invest for income, particularly during times of market volatility.

By identifying opportunities and building a well-diversified portfolio, a professional investment manager can lessen the effect of market volatility on long-term performance.

A comforting and accommodating Investment Manager can be helpful in uncertain times. When building a portfolio, a wide variety of assets, including less often utilised funds, like investment trusts, are used. This allows for true diversification.

Even if bespoke may be more expensive than an MPS, it is crucial to compare long-term performance to industry standards.

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