- Almost half of advisers (47%) appreciate the flexibility of multi asset funds over a Model Portfolio Service (MPS)
New Adviser research[1] from Seneca Investment Managers (‘Seneca IM’) highlights that multi-asset funds appear to be gaining increasing traction amongst advisers with almost half (47%) of advisers questioned feeling that greater flexibility was a reason to consider multi-asset solutions over MPS.
When trying to help clients meet financial goals, advisers are usually faced with several options that they can utilise to help them advise investor clients efficiently. MPS and Multi-Asset funds are among the two popular options that intermediaries opt for, according to the research.
Other reasons cited by advisers for why they would opt to use a Multi-Asset approach over a model portfolio, include cost (37%) the perceived greater diversification benefits (37%), potential tax benefits (37%) and the potential for greater risk management (35%).
However, there were some factors evident in an MPS service that would prompt advisers to choose this option. Two-in-five (41%) advisers favour the flexibility MPS’s offer, while nearly half (47%) of advisers valued potential tax benefits on offer from using MPS.
Creating a specific In-house portfolio was a primary consideration (29%) when designing a portfolio to meet a certain risk target for a client.
Steve Hunter, Head of Business Development, Seneca Investment Managers, said: “The financial planning that clients require has grown in sophistication. It’s heartening for advisers that the investment options available to them in order to serve their clients has similarly evolved.”
“Different options have their benefits and risks, and it seems Multi-Asset funds are popular with advisers. Different client needs will call for different solutions, and the flexibility, suitability and cost will be key drivers as advisers look for the solution most appropriate.”
About Seneca Investment Managers
Seneca Investment Managers, based in Liverpool with a national coverage, operate a Multi-Asset value approach to investing. Investors in our funds range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.
Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.
Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate, and investors may not get back the full amount invested.
Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP19 340
[1] Research commissioned by Seneca Investment Managers was conducted by Censuswide amongst 202 advisers between 18.09.2019 – 25.09.2019