A reason financial advisers often give for not outsourcing their investment management to a low-cost, evidence-based model portfolio service is that every client deserves an “individually tailored portfolio”.
They’re right, of course, that everyone’s needs are unique. But, as ROBIN POWELL explains in his latest post for Betafolio, the evidence suggests that advisers who genuinely design bespoke portfolios for each individual client are very rare.
For a growing financial planning business, switching to a low-cost, evidence-based investment proposition such as Betafolio or one of its competitors is a no-brainer. And I speak from experience.
RockWealth, the planning firm that I work for, was an early adopter, and we haven’t looked back. It’s enabled us to focus on areas where we really can add value — holistic financial planning, for example, cashflow modelling, behavioural coaching and client education. In short, it’s better for us and better for our clients.
More and more firms are now taking this route. The fact that Betafolio attracted assets of more than £250 million in little more than a year of launching tells its own story.
But why hasn’t there been an even bigger shift? Why aren’t we seeing the floodgates open?
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Robin is a regular columnist for the Betafolio website. Here are some of his other recent posts:
Why you should avoid investment themes
Spotting tomorrow’s fund stars is very hard
PREVIOUSLY ON TEBI
How does monetary policy affect asset prices?
The investing industry is not your friend
Does the low-volatility premium actually work?
The role of “active fee” in fund selection
Should you invest in a dividend ETF?
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© The Evidence-Based Investor MMXXI
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
