I have a pension pot and need to invest it
17 July 2023
Question by Francis
I have a pension pot and need to invest it. I've looked at various financial adviser companies and whilst I can see they are chartered and give impartial advice, I cannot find any information on the performance of their model investment portfolios. Is there somewhere that this is published or that I can find this this out? Appreciate any advice you can provide - thanks!
Answered by Matthew Spence
Hi Francis,
This is an excellent question and here are several things to consider:
1. In-house
To begin with, it is important to determine whether the financial advisory company manages an in-house Model Portfolio Service (MPS) range or if it outsources this function. If the company has an in-house MPS range, I recommend requesting the latest factsheet for each portfolio, which should provide information on historic performance.
2. Outsourced
Financial advisers often outsource investment management due to the diverse requirements of their clients, necessitating a range of investment solutions. Partnering with reputable investment management companies can offer efficiency, access to specialised investment experience, resources, risk management and can help with regulatory compliance.
If the financial advisory company outsources investment management, you could enquire about the providers they typically work with. Having a conversation with financial advisers from different companies may help you determine the most likely MPS solution for you, and they may provide you with a factsheet. However, it is important to note that without a comprehensive suitability assessment, which considers your investment objectives, financial situation, investment timeframe, risk profile, and capacity for loss, it would be challenging for the adviser to determine the most appropriate MPS solution for you.
3. Additional considerations
It is crucial to understand that past performance does not guarantee future results. Many factors can influence performance, such as different investments performing better in specific economic environments, investment management styles, and liquidity to name a few. While historical performance is informative as it partly demonstrates ability, it is more important to focus on investment management processes, risk management, and ensuring that the chosen MPS solution aligns entirely with your investment objectives, risk profile, and capacity for loss.
I hope this provides some helpful insights to address your question.
Matt
Answered by
Matthew Spence
Director
I am an experienced financial adviser committed to helping individuals and families achieve their financial goals. With over 19 years of experience in the financial industry, I have had the privilege of assisting numerous clients in making informed decisions and securing their financial future.
