Why we outsource our investment portfolios

Here at Prosperity IFA, our number one priority has always been to make sure our clients get the very best service possible. But as our client numbers have grown, overseeing the day-to-day administration of investment portfolios had become a significant issue for us. Investment regulation requires us to contact every client – and get their approval – before we could make any changes to their investments that we felt were necessary.   

Anyone who didn’t respond in a timely manner, or at all, had to be left out of any portfolio changes or rebalancing, causing further complications. We reached the point where – instead of managing the administrative process of our clients’ investment portfolios ourselves, we felt it was in the best interests of our clients to delegate this responsibility to a trusted partner.

The selection process
Once we had made that decision, the challenge was to find an outsourcing partner that shared our values and would treat our clients as well as we would. Our clients have always been satisfied with the performance we have delivered, so we knew we didn’t want a relationship that would compromise on investment returns. We spoke to several providers, but Casterbridge were the most flexible and approachable. They came to us with a blank sheet of paper and began by listening to our needs, rather than telling us how they would run our portfolios.  We are still active in the investment committee and now sit in with Casterbridge at regular intervals.

An exclusive range of investments
Together, with Casterbridge we have developed a suite of seven discretionary multi-asset portfolios available exclusively to Prosperity clients. The ESG Integrated Prosperity Wealth Portfolios are run by the highly-experienced investment team at Casterbridge, but with idea generation and full portfolio oversight undertaken by Prosperity’s Investment Committee. Casterbridge is also responsible for regular and ad-hoc portfolio rebalancing, as well as ongoing portfolio maintenance and administration.

What’s changed for clients?
On the surface, clients may not notice too many changes – and we think that’s a good thing. The multi-asset portfolios continue to be managed based on our investment insight and values, including how we manage risk, and clients will continue to receive from us monthly and ad-hoc investment commentary, as well as regular portfolio factsheets. 

But perhaps the single biggest change from our clients’ perspective is that their money is now being managed on a discretionary basis. This means we don’t have to wait for them to confirm their approval before making important decisions designed to rebalance investments, manage risk, and enhance performance.

A better service for everyone
Since we started using Casterbridge for portfolio administration, we’ve been able to focus much more on the needs of our clients, without the organisational burdens that took up so much of our time before. More importantly, we have now significantly reduced the time it takes to implement portfolio decisions for our clients, which is particularly important during times of market volatility.

We’re pleased to be working with Casterbridge, a trusted partner who shares our belief that clients are not just numbers. Time and again they have proven that they care, and that’s the most important part of the relationship for us. We hope you’ll recognise the benefits of this new approach.

Share this post