Transact – BlackRock MPS update

Ben Roberts reflects on our recent Transact Connect events

November saw our final ‘Transact Connect’ event of the year in London which provided another great opportunity to meet advisers and discuss investment options on Transact, the trends we are seeing and of course the Transact – BlackRock MPS.

I was lucky enough to be involved in the ‘Future of Investing’ roundtable sessions, where I reflected more broadly on some of the key considerations for advisers outsourcing to Discretionary Investment Managers (DIMs). I’ve outlined these below.

Firstly, understanding the structure of the arrangements between you as the advisory firm and the DIM. We essentially have two legal operating models in the market: ‘Agent as Client’ and ‘Reliance on Others’. Both structures have their pros and cons and can work equally well. What is crucial is that each party has a clear understanding of the arrangement, who is responsible for what and any potential implications. This should all be clearly set out, and documented with the required client consent. In my experience there is usually some work to do to ensure that is the case. For example, reviewing and updating your client agreement where appropriate.

Secondly, due diligence. We looked at the key reasons why more and more advisers are choosing to outsource to DIMs but whilst you are outsourcing the significant work involved in setting up and running investment portfolios, it is still essential that the appropriate research and due diligence is carried out, and documented, on the DIM and the chosen investment strategy.

Lastly, I talked about control. I naturally speak to a lot of adviser firms reviewing their existing investment proposition and looking to make a change. It could be the first time they’ve considered outsourcing to a DIM. This can be a fundamental change to the existing investment proposition. For example, moving from an active to passive approach, or moving away from a significant UK bias to a more global portfolio. In my experience it is often hard to relinquish control and it can take some time and effort to fully adopt and embed a new proposition. Any change can be challenged by short-term market movements and volatility. So, it’s vital to fully understand the investment approach and philosophy of the DIM.

There are a number of ways the Transact – BlackRock Model Portfolio Service (MPS) can support you in each of these areas. These include our range of engaging investment material, regular investment commentaries, due diligence reports and free access to BlackRock’s portfolio analysis tool – Portfolio 360. To discuss these or any aspect of the service please do get in touch with me Ben Roberts (Transact MPS Manager) via broberts@integrafin.co.uk or on 07717 846574.

1. Introduction 
2. TOL Recent Enhancements 
3. Further Service Improvements Planned for 2024
4. Inactive Client Relationships
5. Succession Planning Update
6. Share Class Conversion
7. Transact – BlackRock MPS Update
8. Pensions Update – Ring Out the Old Ring In The New
9. Fund Changes & Top 10 Fund Manager Assets
10. Interest on Cash Deposits
11. Transact Events 2024