Transact – BlackRock MPS

It was fantastic to meet so many of you at our recent Connect events in Birmingham and Leeds. During these sessions, I explored some of the key reasons advisers are increasingly turning to outsourced investment solutions, as well as some challenges and considerations.

One major factor driving this trend is the significant reduction in costs for discretionary investment management (DIM) services. The main question advisers face is: “What is the cost of setting up and managing client portfolios ourselves versus outsourcing?” This affects the total cost for the end client. Managing multiple models and obtaining multiple authorisations can be time consuming and ultimately expensive. Plus, ongoing research and due diligence in a constantly changing regulatory market adds to these costs.

At the same time, we see a growing shift towards financial planning with many advisers concluding that this is where they add the most benefit and there is an opportunity to provide this investment service. DIMs can leverage their scale to offer highly competitive prices and access institutional share classes and pricing, further lowering costs for the end investor.

Outsourcing also provides access to DIMs investment expertise and capabilities. They handle the ‘heavy-lifting’ of constructing and managing portfolios. This involves research, risk analysis, asset allocation, currency exposures, investment vehicle selection, and operational tasks like rebalancing. For me this is all about accountability. Often managing an investment proposition ‘in-house’ is dependent on one or two individuals within the advice firm and this can be viewed as an unnecessary risk. So many prefer to outsource to a DIM. DIMs also offer additional support through their regular communications and investment commentaries, keeping investors engaged and informed for the long term.

Investment performance is another crucial aspect when reviewing strategies. The current macro-economic challenges and heightened market volatility have led many firms to consider outsourcing, with performance against peers being a key factor in their decision.

The Transact – BlackRock MPS achieved top five percentile performance in 2023 within its peer group while maintaining risk within targets. BlackRock’s investment management fee is just 0.06% p.a., with underlying Ongoing Charges Figure (known as OCF) for the portfolios capped at 0.20%.

If you’d like to know more about the Transact – BlackRock MPS head to the Transact platform and go to: Templates > Transact – BlackRock MPS.

If you’re thinking about outsourcing or reviewing your current investment strategy, and would like to discuss the Transact – BlackRock MPS, please get in touch with me, Ben Roberts, Transact MPS Manager, on:

Mobile: 07717 846574
Email broberts@integrafin.co.uk,
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1. Introduction
2. TOL Recent Enhancements 
3. Non-advised Clients Need Advice
4. Removal of Adviser Purchase Related (Initial and Switch) Fees
5. New Sustainability Disclosure Requirements
6. Insights From Australia
7. Transact – BlackRock MPS
8. The Increasing Popularity Of The Investment Bond
9. Transitional Tax-Free Amount Certificates
10. Interest on Cash
11. Transact Events 2024