Tailored MPS: How a sustainability-minded investment business streamlined operations and enhanced client services
How did the management team at Heritage Investments save £150k worth of labour costs with a tailored solution that met diverse client needs while building a foundation for growth?
Challenge: Balance Complexity with Scale
The Heritage centralised investment proposition (CIP) consisted of blending several multi-asset providers alongside Managed Portfolio Solutions and as Heritage continued to acquire firms with unique approaches, it maintained a range of investment philosophies. The broadening client base appreciated the diversity, but the resource-intensive process of managing multiple investment approaches became increasingly unsustainable, especially in light of growing Consumer Duty obligations.
The crux of Heritage’s challenge lay in portfolio rebalancing and client reporting processes. Amalgamating data from various providers for each rebalance was time-intensive and presented potential difficulties in maintaining optimal fund selection and weightings across all portfolios. As the firm looked to scale operations, they recognised an opportunity to enhance efficiency while preserving their high standards of expertise. Heritage sought to refine their processes to support continued growth and client service excellence.
Approach
Heritage implemented FE Investments Tailored MPS, which aligned to the needs of their clients while supporting their centralised investment proposition. Heritage gained access to a range of well-researched, tailored portfolios that align with the firm's risk choice of risk level and enable their clients to meet their financial goals. Tailored offers a simplified investment process that makes it easier for clients to understand their portfolios, while Heritage receives support from a trusted partner including the award-winning FE Investments research team.
How did Tailored help Heritage?
1. Cost reduction
Heritage saves approximately £150,000 in labour costs by outsourcing DFM management and streamlining portfolio mapping processes.
2. Consistent client experience
With Tailored MPS, Heritage delivers a streamlined CIP and retains the look and feel of their models across their entire team of advisers.
3. Enhanced efficiency
Portfolio mapping time went from 45 minutes to 15 seconds, speeding up admin in the investment process.
4. Effortless compliance
Because FE Investments operates as a DFM, Heritage is relieved of regulatory and capital adequacy burdens associated with in-house DFM management. And FE Investments offers proven demonstration of Fair Value to comply with Consumer Duty regulations.
5. Future-proofed operations
A joint investment committee enables continued responsiveness to the regulatory landscape and easily adapts to new investment strategies as needed.
6. Managed risk
Standardised portfolio recommendations lower the potential for client complaints and compensation payments resulting from the selection of wrong funds, wrong weightings or portfolio drifting away from the risk profile.
"FE Investments' self-contained solution has upleveled our operations. The speed at which we can now map solutions to clients is remarkable – what used to take us 45 minutes now takes just 15 seconds. Their high-quality research has been invaluable. Cost-wise, it’s been incredibly effective. To replicate this in-house, we would have needed to hire at least 2-3 people for a centralised investment proposition team. Ultimately, FE Investments' solution has allowed us to focus on what we do best – serving our clients.”
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Important information:
This is a marketing communication, intended for financial advisers only. Not for use by retail investors. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. The value of investments and the income from them may go down as well as up and you may not get back the amount originally invested. Past performance is not a guide to future performance