Matthew Bird, who runs advised model portfolios for Seer Green Financial Planning, said: “All clients are warned at point of policy setup about the importance of reviews [and] rebalancing. The occasional one that doesn’t respond at their annual review must be left in the original portfolio, which can drift in asset allocation over time, which isn’t ideal, but we endeavour to keep in contact with the client and remedy this.”
Fraser Donaldson, insight analyst at Defaqto, said the problem had been helped by technology advancements. “The use of platforms means it is a lot easier to monitor who has and who has not changed,” he said.
KEY NUMBERS
31%
Adviser research by NMG has found 31 per cent of investments below £50,000 are in models
Q4
The FCA is to study platforms, encompassing model portfolio usage, in the fourth quarter
