This gives advisers access to a range of low cost, risk graded, investment options for use with their clients.
Lorna Blyth, Investment Marketing Manager at Scottish Life, commented:
"Outsourcing the investment process is a growing trend, centred around the provision of a consistent and robust investment process for different segments of an adviser's client bank. However, there's growing pressure from the FSA to ensure that the providers chosen for the outsourcing are suitable in terms of cost, servicing and other relevant factors, and that the approach taken is not 'one size fits all'.
"Scottish Life's Governed Portfolios has proved hugely successful in delivering a low cost, risk graded investment solution designed specifically for pensions. But we've always recognised that it may not be the right solution for all segments of an adviser's business.
"Governance is something we feel should always be provided. Advisers have to be comfortable that, if they choose to outsource the investment process, the provider is doing the job they have been trusted with. So we've formed strategic partnerships with four of the leading discretionary fund managers in the market to offer a range of segmented investment solutions in addition to our own Governed Portfolios.
"We're offering their packaged risk graded funds at a competitive price through our pension products. And we've also created new fixed lifestyle strategies that chart a path from higher to lower risk funds as clients approach retirement."
The main benefits of outsourcing the investment solution are:
- it cuts the amount of chargeable time from the adviser process
- it provides a consistent investment advice service, with consequent compliance benefits
- it helps to manage the risks associated with investment selection.
