Managed Portfolio Service Frequently Asked Questions

Which risk tools are you aligned with?

Our models follow an asset allocation methodology that represents RSMR’s best ideas and are currently risk-rated by both Dynamic Planner and Synaptic, and our actively managed range of portfolios - Rfolios – are risk profiled by Defaqto. We also work with firms that use other risk tools, offering support in mapping our portfolios against different risk parameters.

Which platforms are you available on?

Aviva, Fidelity Adviser Solutions, Nucleus, abrdn Elevate, abrdn Wrap, Transact and Quilter

What information will I receive - and how often?

We send out regular supporting information on each of our portfolios – this includes:

• Portfolio summary sheet, a one-pager that shows latest performance across the entire portfolio range
• Factsheets – individual portfolio factsheet for each of our models, showing latest data
• Quarterly review document – we review our portfolios every three months in January, April, July and October and following this period we issue a review document that provides commentary and highlights any changes that have been made.
• Quarterly market commentary (Viewpoint) plus an investor-friendly version (Investor Insight) that can be used with clients. Both are sent out by the third week of each quarter in January, April, July and October.

Can you supply me with a due diligence report on RSMR?

Yes, you can find this here within the MPS Resources section.

Do you operate under Agent as Client or Reliance on Others?

RSMR operates under ‘Agent as Client’, which is the most appropriate structure for the type of MPS models that we operate. We treat you, the adviser, as a professional client and provide the necessary selection of portfolios to suit a wide range of client objectives, leaving you with complete control of your client relationships and responsibility for portfolio selection and suitability. 

Would you consider engaging with me on a Reliance on Others basis?

RSMR has carefully considered the relative pros and cons of Agent as Client versus Reliance on Others and at the present time we will only operate under Agent as Client.

Feedback from advisers has overwhelmingly shown us that client sovereignty is one of the most important aspects of their relationship with an MPS provider – the Agent as Client structure means that RSMR will have little knowledge of who the end investor is.

But doesn’t Agent as Client mean that you’ll treat me as a Professional Client? How does that affect the end investor?

The status of ‘Professional Client’ has, quite understandably, raised concerns that investment choices could be made that would not otherwise be suitable for a retail investor. RSMR’s approach to running MPS models is to only select collective funds, listed within an appropriate IA sector and which have already undergone the rigorous due diligence process to award an RSMR rating.

Our strict investment mandate, selecting only RSMR rated funds, is the best of both worlds – it allows us to support advice firms on a professional basis with underlying fund selections that meet the required standard to be recommended to all retail clients.

How often are the models reviewed?

We formally review each of our portfolios on a quarterly basis (in January, April, July and October) but new data, asset class views and any potential portfolio fund changes are frequently discussed within the team.

Do you have automatic rebalancing?

Every quarter we review each of our portfolio strategies and assess them for any changes to either strategic/tactical asset allocation and/or fund choice. If we feel that a rebalance is necessary to maintain the risk/return characteristics of our models then we will do so, but we are also mindful of the costs of trading which can be detrimental to performance over the longer term.

What is RSMR’s approach to ESG?

ESG factors represent potential risks to any fund’s holdings, irrespective of the fund’s badge, therefore we consider ESG to be an integral part of the research process for all funds we assess, monitor and ultimately rate.

We introduced Responsible fund ratings back in 2012 (called SRI ratings at the time and subsequently renamed as 'Responsible') in response to demand from our advisory clients. Funds which receive our Responsible rating need to satisfy our additional criteria. As part of our Responsible fund rating process, we determine which of the four RSMR Responsible categories the fund belongs in:

• Sustainable – funds that select and include investments on the basis of responsibly contributing to and benefiting the global sustainable economy. This may include referencing the portfolio to one or more of the UN Sustainable Development Goals (SDGs) or the application of a screen.
• Impact – funds that can demonstrate that they are aligned to the Global Impact Investing Network’s definition of Impact: 'Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.'
• Thematic – funds that use macro themes to identify long-term responsible structural growth trends.
• Ethical – funds that apply a screen, either positive, negative or both, that may be based on ethics or on a ‘best in sector’ approach. Each fund will have its own defined screen and may vary between providers.