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What is a Model Portfolio?


I have recently been asked to consider a model portfolio by my financial advisor. Can you explain what this means?


Model portfolios are the vehicles investment managers use to meet clients’ financial goals and objectives. A well-researched and closely monitored model can go a long way in enhancing the asset management firm’s credibility.

Research teams have to do in-depth analysis of various asset classes available in a market and drill down to identify investment ideas that will produce optimum return with the right risk. Investment management firms segment their customers and allocate models that will fit the needs of each segment, ranging from Cautious risk through to All Equity mandates.

Further consideration is given to security types which may at times require a more passive low-cost style of investing.

The use of Exchange Traded Funds (ETF’s) have become a popular way of providing low cost model portfolios against the more expensive traditional holdings in stocks and bonds.

It is the role of the financial advisor to select the appropriate investment manager together with ongoing monitoring to make sure that the model portfolio remains within its risk segment with the correct asset allocation and performs in line with your chosen benchmark.

About the Author

John Leonard, Head of Business Development

Tel: 01534 488773 • Mobile: 07797 742811

John Leonard is responsible for our Private Clients based in Jersey. John recently joined SaSo Strategic Advisers in August 2017 having spent the previous 7 years in an established financial services business where he was responsible for providing advice to both private and corporate clients in all areas of financial planning.

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