Jupiter warns advisers against 'big problem' of products that 'over diversify'

Laura Miller
clock

Jupiter has warned advisers against products that over diversify investments in a bid to fit the mould of modern portfolio theory and regulation.

Changes in regulation - which mean advisers have to focus more on robust and repeatable outcomes - have seen the rise of model portfolios which advisers can use to allocate a client's assets according to risk and volatility. At the same time modern portfolio theory states that it's possible to construct an "efficient frontier" of optimal portfolios offering the maximum possible expected return for a given level of risk. However Jupiter Unit Trust Managers director of strategic alliances Neil Carter warned delegates at an event in London this morning against modern portfolio asset allo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Managed solutions

Why the FCA's latest probe can help solve MPS 'information void'

Why the FCA's latest probe can help solve MPS 'information void'

'MPS growth has been profound in the last decade'

Graham Folley
clock 31 March 2025 • 4 min read
Why evidence-based investing is the smarter path for advisers and clients

Why evidence-based investing is the smarter path for advisers and clients

'Evidence-based investing provides a disciplined, long-term strategy'

Yariv Haim
clock 31 March 2025 • 4 min read
Brooks Macdonald launches Global MPS after adviser demand

Brooks Macdonald launches Global MPS after adviser demand

Available to advisers exclusively via third-party wrap platforms

Jenna Brown
clock 18 March 2025 • 2 min read