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?
Robin is a regular columnist for the Betafolio website. Here are some of his other recent posts:
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