10th November 2011

Avalon: A way to outsource investment management.

With RDR around the corner, a growing number of IFAs are looking to outsource the investment management they have traditionally undertaken for clients to experts in the field.  A discretionary fund manager allows IFAs to create bespoke model portfolios for their businesses.  Our close relationship with Minerva Fund Managers has allowed Minerva to set up model portfolios on the Avalon platform which in turn allows all client rebalancing to be performed in one go.

IFAs that set up model portfolios with a discretionary manager can brand them to their own firm.  This enables you to build a range of risk and reward options from cash through to high risk depending on the clients' needs.  You can choose whether to get involved in the asset allocation or not.

Paul Warner, the Investment Director at Minerva, said: "If a fund manager leaves, the IFA needs to advise the client on what to do.  If the fund selection had been made because of the fund manager, the IFA may think it best to switch to another fund.  To do that, and in a Treating Customers Fairly way, the IFA will have to inform all their clients at the same time.  With holidays, people away etc, this is extremely difficult.

The volatile markets of 2008 to 2009 drove home a lesson to many IFAs.  They realised that if they were to manage their clients' portfolios properly, to be able to act defensively if needed, and to take advantage of investment opportunities, as well as deliver a full financial planning service to their clients, they had to outsource the investment management.  IFAs do not have to be huge advisory firms to go the discretionary route and the choice will add value to their service.” 

Avalon Investment Services have provided a Discretionary Fund Management service for a number of years now through Minerva Fund Managers who have put together various model portfolios to suit everyone.  We are also able to provide bespoke portfolios or if you would like to launch your own DFM service on our platform then this is also welcome.  Using the Avalon platform you can set up your own DFM service without losing control of your client’s assets.  You choose the discounting manager and if the service or performance is poor then you can change it.

Advisers have many questions to help them select the most suitable platform.  We know that many advisers will use more than one platform so as not to keep all their eggs in one basket.  That’s where Avalon comes in.  Although some clients prefer to think that their money is safer with a household name, many advisers are now realising that independent companies such as Avalon have so much more to offer both the IFA and their clients. 

Remember, our platform is our business unlike multi-nationals where it is just one part.  We have many advisers on our books from the one-man band to large firms and they all agree that our personal level of service and particularly our flexibility is second to none.  We aim to keep our website updated with all new exciting discounts we have established with fund managers as well as all other news so why not add http://www.avaloninvestment.co.uk/ to your favourites.

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