Thu. May 30th, 2024

In recent years, model portfolio services (MPS) have become increasingly popular, but the platforms offering these services have struggled to keep up with demand. This is due to a number of factors, including the consolidation among wealth management firms, the move towards centralised investment models, and the outsourcing of investment management by advisers. As a result, experts have identified a flaw in the system where old platform technology and manual processes are creating issues for MPS buyers and the platforms themselves.

One of the main problems with outdated platform technology is that it can lead to delays and errors in the execution of trades. This can have a significant impact on the performance of the MPS, as well as causing frustration for investors. In addition, the manual processes involved in managing MPS can be time-consuming and prone to human error. This can result in inaccurate record-keeping and difficulties in tracking the performance of the portfolios.

The use of legacy platforms also limits the flexibility and scalability of MPS. These platforms were not designed to handle the increased volume of transactions and data that come with the growth of MPS. As a result, there can be delays in processing trades and accessing up-to-date portfolio information. This can make it difficult for advisers and investors to make informed decisions about their portfolios.

Furthermore, the lack of integration between different platforms can make it difficult for advisers and investors to access and manage their MPS. The use of multiple platforms can lead to duplication of effort and inconsistencies in data. It can also make it difficult for advisers to track the performance of their clients’ portfolios and make adjustments when needed.

Overall, the outdated platform technology and manual processes used in MPS are creating significant challenges for both the buyers and the providers of these services. It is essential for the industry to address these issues and invest in modern, integrated platforms that can support the growing demand for MPS. Failure to do so could put the future growth and success of MPS at risk.

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