(Guest post by Ian Holdsworth, Managing Director of Financial Solutions SC Limited)
With RDR, qualifications, segmentation etc as well as trying to run a profitable company it has been extremely helpful to find a company that will free up more of my time to enable my company to give expert investment advice based on thorough research rather than a managed fund or a “flavour of the day”.
Although the majority of my investments are held on platform or within a SIPP there has been in the past very little in the way of independent portfolio tools that can help build a diversified portfolio based on attitude to risk and asset allocation.
Morningstar offers an in-depth solution with their Adviser Workstation that has no bias towards particular funds or companies and more importantly gives in depth research into each fund selected. It is then possible to build a model portfolio based on risk and asset allocation that are all shown on their system. This ensures that no sector is over or underweight and that the portfolios can be rebalanced.
I would have to say it is not the most user-friendly system but it is certainly worth the while to spend time learning how it works and ensuring it fits in with your company requirements. The team at Morningstar could not have been more helpful though in helping me understand the system.
With the latest paper from the FSA looking into how IFAs recommend funds and put together portfolios I feel this would be an ideal solution to that issue.
Ian Holdsworth is Managing Director of Financial Solutions SC Limited, an FSA-registered financial advisery firm based in Southend-on-Sea, Essex.
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