Model Portfolio Service (MPS)

An independent unconflicted service

Available on 10 platforms

Risk managed to match suitability process

The Range Of
Model Portfolios

Seven risk-controlled model portfolios,
carefully constructed to suit each client.

PortfolioMetrix has received Defaqto Risk Ratings across each of its 7 MPS Select models. Learn more.

Click on the chart below for more information on our range of Select portfolios.

Efficient Frontier

PMX Select Portfolios 1-7

Performance

Each model portfolio is managed with the goal of
generating the best possible risk-adjusted returns.

Make Your Comparison

Compare PMX to …

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Historic return …

Historic return …

Ask Us for up-to-date data in various formats including via fe analytics

Performance is net of PortfolioMetrix and fund charges but gross of platform and adviser charges. The information given here is for information purposes only and is not intended to constitute financial, legal, tax, investment or other professional advice. It should not be relied upon as such and PortfolioMetrix cannot accept any liability for loss for doing so. Any forecasts, expected future returns or expected future volatilities are not guaranteed and should not be relied upon. Data Source: PortfolioMetrix. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. Past performance is not a reliable indicator of future performance. PortfolioMetrix Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. Full calculation methodology available on request.

Resources

Make an informed decision with the help of the resources in our knowledge hub

More information can be found in our model portfolio factsheets

The value of expertise

Read our comprehensive list of FAQs

Get in touch
to find out more

Award Winning

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Partnered with …

The MPS range is available on a number of platforms as well as being mapped to risk profilers and other related tools and services.

Supported by …

Information about the MPS range can be found on a range of third-party due diligence websites.


Ask us when we are adding your preferred service.
We’re regularly adding new links to independent providers.

“If you’re considering using PortfolioMetrix, one thing you can rely on is their integrity to deliver what they say they will deliver.”

Nik Proctor
IFS Family Wealth Advisers

COST

The models are priced at a competitive 0.35% + VAT,
which is mid-range for the industry based on data from Defaqto.

The range of costs for model portfolio on platform

Min 0.08%

0.35%

Max 0.60%

Source: Defaqto DFM Directory (Sep-Oct 2018)

The cost of the underlying investments varies over time and per model but is in the range of 0.3% – 0.9% depending
on the model. (See factsheets for Ongoing Charges Figure (OCF) of each model).

Investment Methodology

We combine the latest academic research, tried and tested portfolio construction techniques and our investment team’s proprietary innovations to deliver best in class performance.

Asset Allocation

Our robust asset allocation process allows us to build well-diversified model portfolios, resulting in a risk-based investment approach which generates predictable risk and return separation. This ensures that you are well placed to manage your clients’ expectations in line with their suitability requirements.

Fund Selection

We work independently, utilising a best-of-breed approach to fund selection whilst still viewing the portfolio holistically, to deliver model portfolios that are efficient and cost effective.

Portfolio Construction

We take a holistic view of the whole range of model portfolios to ensure that they are constructed with both active and passive funds that should complement each other and aid diversification.

Monitor & Rebalance

We monitor the portfolios daily and use a disciplined rebalancing approach that means changes to the portfolios happen only when there is a benefit of doing so. This methodology has been shown to add value over and above a simplistic calendar based rebalancing approach.

“Consider PortfolioMetrix if you’re interested in de-risking your business from a compliance standpoint, improving your client’s investment experience, and giving your business the opportunity to scale up.”

Nigel McTear
Signpost

Frequently Asked Questions

What is the minimum portfolio size?

PortfolioMetrix doesn’t have a minimum portfolio size, but the platform you select might.

Are there any transactional costs?

PortfolioMetrix doesn’t charge any transactional costs, but the platform you select might.

What documentation / commentary do you provide?

  • General
    • Due Diligence Document
    • Investment Process Explanation
    • Brochures
    • Mandates
  • Monthly Updated
    • Factsheets
    • Market Commentary
  • Quarterly Updated
    • Performance Updates
    • Risk Mapping Updates
    • Macro Review
    • Markets Review
    • Portfolio Commentary
    • Portfolio Changes Reasoning
    • Fund Manager Meetings Overview

How is the blend of active & passive decided on?

PortfolioMetrix is agnostic between active and passive funds, preferring to use whichever it thinks will provide the best after fees performance when implementing a particular asset class. Given the strength of PortfolioMetrix’s fund selection process and the depth of the global active management talent pool, PortfolioMetrix does tend to use more active than passive in portfolios.

Are these portfolios trying to maximise the Total Return or the Natural Yield?

PortfolioMetrix’s long-term investment objective is to achieve the highest possible risk-adjusted total return. PortfolioMetrix is agnostic whether this return comes in the form of capital gains, income or, much more likely, a combination of the two, but it will not try to construct portfolios to achieve a particular yield if that entails sacrificing capital gains and hence overall returns.

Are these model portfolios appropriate for clients in the accumulation & decumulation phase?

Yes, PortfolioMetrix has not seen any academically validated evidence to suggest that portfolios should be built differently during the accumulation & decumulation phase. Whether adding money, or withdrawing it, targeting the highest possible risk-adjusted total return is the best strategy. When the marketing spin is removed, and the facts analysed there is no investment method that effectively combats sequencing risk during the decumulation phase.  PortfolioMetrix believe sequencing risk should be managed by the adviser using cash flow modelling.

Are these portfolios ethical or have an ESG focus?

Although the SELECT MPS range doesn’t have an explicit ethical or positive impact mandate, it can very much be described as ‘ESG aware’, in that PortfolioMetrix has a strong preference for funds that have a clear and fully integrated Environmental, Social and Governance component to their investment process. PortfolioMetrix believes that ESG awareness is intrinsic to having a long-term investment framework as society and markets ultimately financially reward companies that are beneficial to people and the planet.

Can the service be white labelled for the Financial Adviser?

PortfolioMetrix can design, build & power an investment proposition for advisers with scale. The portfolios can be delivered via the adviser’s discretionary licence, the PortfolioMetrix discretionary licence or via a unitised set of portfolios. Please contact us to discuss your requirements and find out more.

Do you have access to competitive TERs on underlying holdings?

Yes, we typically get access to the institutional share classes and often we will get access to a founder share class at a lower rate.

Note: not all platforms can offer the founder share classes.

Are the models available within which tax efficient wrappers?

Yes, depending on which platform you choose.

Can you view model performance online?

Yes, depending on which platform you choose.

How is the 10% Drop rule under MiFID II dealt with?

Depending on which platform is chosen the platform will either inform the client directly or the adviser regarding a 10% drop in a portfolio. If the platform’s method is to inform the adviser, then the adviser must then inform the client on the day of the drop.

Will we have access to a client contact/investment team?

Yes.

Are discounted fees offered to larger investment sizes?

Yes, we offer a sliding scale fee discount for larger investment sizes. Please contact us for more information.

Note: not all platforms can offer different fees for model portfolios.

What should I do now?

Please contact us and we will arrange a conversation so we can take you through the proposition and answer any questions you might still have.

Get In Touch

Dave Chessell

Distribution Director

Dave’s key responsibilities incorporate all facets of distribution and marketing as well as being a key member of the team for product development and strategy.

Bruce Ely-Johnston

Business Development

Bruce’s key focus is on leading the Managed Portfolio Service (MPS), working with advisers across the UK, helping practices develop and grow their businesses more successfully.