A managed portfolio is an outsourced investment solution for your business. A third party investment manager will manage investment portfolios on your behalf against an agreed specification for your client.
Things to think about
Outsourcing your investment discretion to a third-party provider is a significant decision for your business. There are a number of things you need to consider and you’ll also need a robust platform provider.
Ultimately, it boils down to a question of time and expertise. We understand the pressures you face, whether that’s client acquisition, fulfilling your compliance burden, tax planning or reacting to clients’ demands. You also need to add as much value to your clients' experience as possible. But where is your time best spent and what help is out there?
Fortunately, there are many companies in the market specialising in investment management. They can reduce the burden of running an advice business, freeing up your time and further confirming your status as unbiased and independent.
Does the type of solution you offer and how much it costs matter to your client? Hopefully, yes, but not all providers are created equal. Take the time to look at the way a provider runs their proposition, and what support you will get from them and how important that is. Weigh up the cost of that service against the value you perceive it will add.
To determine who you’re comfortable working with, you’ll need to identify a partner with a history of meeting client needs and investment performance. You might also want to think about whom you’re doing business with. Do you want to be seen as using one of the household names? Or are you interested in smaller, regional, bespoke solutions? Researching many providers will give a broad choice and allow you to choose one who will suit your business better than others.
View our list of DFMs
What are the potential downsides of outsourcing?
You will hand over control of the investment, including rebalances and fund selection. If control is important to you, it may be worth designing your own models for your clients.
You’ll also be adding cost. Handing over investment decisions to a team who dedicate all of their time to research and selection comes at a varying cost. Because of this, you’ll have to decide whether the value added to the client is worth the additional expenditure.
How we can support you
We work with over 30 DFMs.
We also work with Morningstar, who have developed a range of governed portfolios exclusively for Aviva customers. Take a look at the quarterly governance minutes for the exclusive portfolios here
We’ve integrated with the DFMs, all of which you can access these seamlessly with your Aviva for Advisers login. This means all you have to do is choose the appropriate investment portfolio offered by the DFM when processing the application online.
If you have DFMs you prefer to work with that aren’t on our list, we can consider adding them for you.
Once you are happy with the DFM you have chosen, simply get in touch with them and tell them you would like to access their portfolios on the Aviva Platform. The DFM will take it from there.