Overview
Like many IFAs across the UK, Perry Monroe operated advised portfolios for their clients. Doing so created an administrative burden. Rebalances and investment changes required client communication and confirmation before those changes could be implemented. Those delays led to inconsistent implementation across client accounts, adding significantly to the administrative burden.
Although Perry Monroe implemented solid processes and efficient communications to help reduce this burden, a considerable time cost remained, taking the team away from their primary focus – financial planning for their clients. The secondary impact was that their ability to expand the business was limited – creating a scalability issue linked to inefficient operations.
“Throughout our work with P1, they have proven to be a knowledgeable and valuable
addition to our investment process. They have taken time to understand our company and investment philosophy both at the outset and on an ongoing basis which gives us every confidence that they understand what we are looking to achieve for our clients.”, Daniel Lawrence, Managing Director of Perry Monroe.
Approach
Consultation: through a series of meetings with P1, the Perry Monroe team discussed their existing Centralised Investment Proposition (CIP) and made
decisions on the model portfolio range required for their clients. They outlined how many portfolios were needed, including initial asset allocation, maximum
ongoing charges targets and ESG criteria.
Portfolio Mandate Created: P1 then created the discretionary portfolio mandates for Perry Monroe, who signed them off following review. With the mandates in place, the P1 Investment team created the portfolios – a blend of active and passive investments, the strategic allocation set by Perry Monroe in consultation with P1 and with a bias towards positive ESG criteria. The portfolios were created on two third-party adviser platforms and P1’s own platform solution. Perry Monroe’s mandated and branded discretionary model portfolio range was then ready to use for their clients.
Ongoing Development: The P1 investment team and Perry Monroe hold joint quarterly Investment Committee Meetings (ICM). P1 provide Perry Monroe with an ICM agenda, portfolio performance data, market commentary, and suggestions for asset allocation and fund changes. Following the ICM, the P1 team make any investment changes and instigate the rebalances across the portfolio range.
Results
- 8 risk-rated, branded model portfolios: five focused on growth & three on income
- A suite of portfolios designed by Perry Monroe and bespoke to their client base: expertly managed, without increasing the firm’s regulatory responsibility.
- Lots of freed-up time: an efficient and effective portfolio range has freed-up time for Perry Monroe to focus on their clients and their business.
“Having the Perry Monroe portfolios managed on a discretionary basis has allowed us to
continue to grow the business more efficiently. It has given us time to concentrate on financial planning for our clients whilst still being fully aware of how our portfolios are being managed via our quarterly ICM’s.”
Conclusion
An award-winning investment team manages Perry Monroe’s portfolios on a day-to-day basis. They have been able to design a branded discretionary portfolio range
and have ongoing input without adding to the firm’s regulatory responsibility.
The reduction in time spent on advised portfolios has allowed Perry Monroe to grow its business. They are now recruiting an additional adviser and support staff whose focus will be on their clients, not day-to-day investment research and advice.
In addition to this business growth, their existing clients now see the Perry Monroe brand at every stage of their financial planning. Their brand is at the heart of the client relationship, not a third-party DFM.
If you want to discuss freeing up more of your time to focus on your clients and growing your business, contact us to develop your model portfolios using the P1 Mandated Model Portfolio service. Get in touch today and start the conversation.
