Many discretionary managers deliver their investment proposition in a range of options from bespoke portfolios to model portfolios on platforms or in a unitised structure. We have looked many times at the advantages and disadvantages of these but always concluding that the benefit is that they can all satisfy the requirements of a range of customers and therefore ensure appropriate client outcomes.

Whilst over the last couple of years, the rise of model portfolios on platforms has been exponential, there has also been a rise in the number of unitised versions of these portfolios coming to market.

In addition, we have seen a number of wealth advisory funds who currently operate model portfolios and a centralised investment proposition starting to consider the advantages of changing this to a fund structure. At DISCUS we have been asked about how this can be facilitated.

One of our newest partners Alpha Beta can work with firms to establish funds in line with their objectives ensuring that the adviser remains integral to the investment process. Key to this is having access to a relationship manager and full access to the investment team at Alpha Beta.

We asked Geoff Brooks, CCO at AlphaBeta why this is becoming popular:

‘Wealth management firms are now very familiar with the benefits of using a Centralised Investment Proposition (CIP) as part of providing private clients with a coordinated investment proposition. However they are now looking at how this approach could be maximised for the benefits of both the firm and the clients. Changing to a fund structure makes the investment process more efficient, reduces costs, better controls risk and potentially enhances the revenues and valuations for Financial advice firms.

Alpha Beta will consult with the adviser to agree the optimal portfolio construction. We then map the current investment funds objectives and benchmarks including the output from the risk system and processes used and build models to match the client profiles. Alpha Beta then uses the latest investment vehicles and smart asset allocation to deliver an enhanced proposition at a lower cost. Alpha Beta works with Host Capital who act as the ACD for the funds and also offer fund oversight and regulatory compliance.

The following diagram demonstrates an example of how all this works:

The key benefits are:

» Modern efficient own brand investment vehicle

» Reduced costs of operation

» Reduced risk in execution

» Better customer outcomes and revenue generation

» No VAT payable vs Model portfolios

» Business development and exit planning strategies

» Partnership with Sponsor Company and CIO group

» Enhanced valuations for adviser business    

Alpha Beta work exclusively with the adviser community and develop partnerships built on service and trust ensuring that the adviser is always in control of their practice and clients.


This article was created for DISCUS following a discussion with Geoff Brooks, Director and Chief Commercial Officer at Alpha Beta Partners. You can find out more about the various investment services and propositions offered by Alpha Beta on their dedicated page

We have also recently added the data on the Compare tool for the Alpha Beta model portfolios offered on a range of third party platforms.