Investment Matters

By Paul Kenworthy

Platform 3.0?

At their recent Adviser 3.0 event, Timeline announced that they would soon be launching a new platform – this is currently named Platform 3.0.?

The aim of this platform is to bring together all aspect so the adviser and client experience, such as fact find, risk profile questionnaire, cash flow, investment analysis, Letters of Authority and a client portal.?

Timeline called this new platform an ‘integrated ecosystem built for modern financial advisers’.?

The platform fee quoted by Timeline is a base fee of 0.15%, which is definitely competitive when compared to other platform fees on the market.?

We will continue to look out for further updates from Timeline regarding this new platform, as it all sounds very promising for advisers and clients alike.?

Defaqto MPS Comparator?

Defaqto have announced the launch of MPS Comparator, which is the only tool which allows comparisons across MPS portfolios with similar characteristics.?

In light of the Consumer Duty, MPS recommendations continue to increase. It is estimated that they increased by 14% in 2024, totalling ￡85.8 billion.?

However, it can be a total minefield trying to work out which providers and portfolios are the most suited for your clients.??

The use of MPS providers should be monitored regularly as part of firms Centralised Investment Proposition (CIP) as there could be changes which mean the current provider no longer matches your requirements, or there could be a new provider which offers a solution which is even more suitable.?

We feel that this new MPS Comparator tool could be very effective when completing research into MPS providers.?

However, if you don’t have the time to complete this research and then update your CIP, get in touch with us at We Complement and we will be able to assist with this.?

Standard Life Smoothed Return Pension Fund?

Standard Life and Fidelity have recently announced that they have partnered to launch a new Smoothed fund called the Standard Life Smoothed Return Pension Fund.??

This fund will be available exclusively on the Fidelity Adviser Solutions platform, and it will be trialled with a number of advisers before being fully launched later in the year.?

Smoothed funds are very popular with advisers as the provide a degree of re-assurance to a client that they wont be subject to the high volatility of other investments.?

A number of Smoothed Funds are available on the market, most notably the PruFund range, with others available from providers such as LV and Aviva.??

It will be interesting to see whether there is much demand for this fund, or whether advisers will continue to recommend the Smoothed funds already in the market.?

However, we feel that the launch of a new Smoothed fund can only be a good thing, as it provides an additional option for both advisers and clients.?

Interest Rates and how they can affect portfolios?

As everyone is no doubt aware, inflation has been extremely high for what has felt like a very long time. In response to this, the Bank of England Base Interest Rate has recently risen to 5.25%.?

In their most recent investment update, iBoss have stated that this has led them to revise the structure of Bond holding within a large number of their portfolios, such as increasing the duration of Bonds, increasing the exposure to a variety of different bonds and increasing the allocation to active managers over passive.?

They state that many of their clients have looked to fill gaps in their portfolio with more complex strategies, such as Structured Products and Absolute Return funds. However the increase in Interest Rates will likely lead to an increase in Bond investments, and their subsequent long term performance.??

They have likened Bonds to Margherita Pizza and Vanilla Ice Cream. They are not the most exciting choice for an investment, but they are classics for a reason.?

This information was taken from the following page: Vanilla Ice Cream & Margherita Pizza ?

Active vs Passive?

The debate regarding Active and Passive investments will likely continue for the rest of time. Both sides have vocal supporters who can provide data to back up their side of the argument.??

According to AJ Bell 91% of UK pension funds have underperformed against a FTSE All Share Tracker over 10 years. Almost three quarters of these funds underperformed by 10% or more, and over a third underperformed by 20% or more.?

While there could be many reasons for the underperformance of many of these funds, these will likely not mean much to the actual investor. If a client is paying the higher charges for an Active fund, they would probably expect to see good long-term returns.?

We will not get into this debate, as we like to remain impartial and open to ideas of the firms that we work with.??

However, we do think that advisers should consider the merits of both Active and Passive investments and see how they could work for their clients. There is no ‘one size fits all’ when it comes to portfolios, and an Active strategy might be right for one client, where a Passive strategy might be right for another.??

Information was taken from the following page: Pension funds underperforming index trackers ?

Navigating the complexities of MPS providers and ensuring your Centralised Investment Proposition (CIP) or Centralised Retirement Proposition (CRP) is up-to-date can be challenging. At We Complement, we specialise in providing comprehensive support to financial advisers. Our expert services can help you research, select, and manage the most suitable investment solutions for your clients, ensuring you meet regulatory requirements and deliver optimal outcomes.?

Contact us today to learn more about how we can enhance your CIP and CRP strategies, and ensure you're always offering the best possible advice and solutions to your clients.?

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