Lifting the bonnet on model portfolios

By its very nature, a model portfolio must set down its process, financial objective, strategic asset allocation, the nature of its individual holdings and, in most cases, a relevant benchmark. The result of this process is that an adviser may assess in a more straightforward way the type of client that could be suited to such a portfolio and how the portfolio might fit usefully into the client's overall wealth, appetite for risk and capacity for loss. Model portfolio discretionary managers are usually very happy to liaise with an adviser to help match their client risk tools to the p...