Having launched its model portfolio service (MPS) for advisers and wealth managers in April last year, Isio is looking at how it can incorporate private assets.
Isio's MPS is made up of seven low-cost outsourced investment portfolios.
These include five multi-asset portfolios ranging from ‘cautious' to ‘adventurous', as well as an equity-focused portfolio and an income-focused portfolio.
The MPS has an annual management charge of 0.15%, with total costs estimated to be in the region of 0.3% - 0.45%.
Private markets is currently a "hot topic" in the industry, according to Isio head of distribution Mike Hanlon.
"We don't currently have private assets in the MPS," Hanlon explained, "but we are looking at alternatives generally."
Rather than simply using equities as a driver of return, the MPS currently looks to credit, with Isio using asset-backed securities and high yield to drive returns.
Incorporating private assets could be difficult as these are usually offered on the institutional side rather than in the retail space.
There are also challenges around liquidity and how to include private assets on platforms.
As a result, Hanlon explained Isio is looking at how private assets "translate into the retail space".
Despite the challenges these assets present, Hanlon believes there is "growing" demand for them among advisers.
He said: "I think there's an element of uncertainty as well in terms of understanding all the different types of those assets and what they mean.
"But I think there's also an excitement about that growing space and how it may be attainable for these retail clients."
While it may not be a "mass thing" right now, Hanlon does think it will be a part of the MPS world at some point.
Pensions and technology
Additionally, Isio is exploring how it can use its pension expertise in the adviser space and support advisers with clients and decumulation.
"Decumulation is a massive thing and we're in the DB/DC space, which is adjacent," Hanlon said.
Supporting advisers with technology is also on the firm's radar.
Hanlon commented: "Technology is a huge thing and firms have supported advisers successfully so we would love to be able to do that."
As part of its move to target technology for advisers, Isio last week announced that it will acquire fintech Collidr.
The deal is intended to drive technology integration, enhanced adviser tools and strengthened co-manufacturing expertise, according to the firm.
Prior to the acquisition, Hanlon acknowledged there was a "gap" around technology for the firm.
He added: "We were more akin to the traditional wealth managers with just the fact sheets and the glossy brochures, and advisers want more than that."
Collidr's offering includes "portfolio health check" tool Noxai.
Noxai acts as an alert system, allowing advisers to see if portfolios are straying outside of any preset boundaries.
Additionally, Hanlon explained Collidr offers front-end tools which enables advisers to show clients where they are invested up to the current day.
"The adviser can sit in front of client with this technology and show them how they've done," he said.
"It's really enhancing the client's understanding and experience of their investments and their portfolio."
With Isio being "relatively fresh" in the adviser space, Hanlon highlighted that currently they are speaking to advisers and firms to understand what they need for their clients.
"We're able to listen, we're innovative and, hopefully, we're quick to react," he concluded. "We'll be led by our adviser clients on these developments."
See more: Isio acquires Collidr in bid to become 'leading force' in MPS market
Professional Adviser is taking its inaugural MPS conference to two UK locations in June. Click here for more information and to register for the London event (3 June), and click here to learn more and sign up to the Warrington conference (25 June).
