Inside MLP’s portfolio selection process

At MLP, we take great pride in ensuring that we offer the best possible investment options for our clients. Our approach is rooted in thorough, independent research and a commitment to continually improving our portfolio selection process.

When we have new clients move over from other advisers, we often find we can significantly improve their investment strategies and portfolios, amongst other financial planning needs. This is why we are so confident in our investment proposition.

Here's an inside look at how we choose our investment portfolios.

We conduct independent research backed by experience

Over the years, we have developed a rigorous research process led by our experienced Investment Committee, which formally scans the market for the best investment portfolios twice a year.

Our in-house screener is at the heart of this analysis, and it helps us ensure we identify the best portfolios in the market that align with our clients’ unique financial goals and risk profiles.

We tailor our portfolios to risk and return expectations

One of the key aspects of our investment research is understanding risk and return. We screen for portfolios that have demonstrated strong performance at each risk level.

A low-risk portfolio won’t generate the same returns as a higher-risk one, and when you take on additional risk, you would expect some higher returns as a result. However, what we often find during our analysis is that some portfolios don’t behave as expected.

For instance, we sometimes discover that a higher-risk portfolio has underperformed a lower-risk one. Even some of the most prominent asset managers in the market have portfolios that don’t align with the expected risk-return relationship.

This is why we dig deep into multiple time horizons to help ensure we don’t miss important performance patterns.

We focus on proven providers

When we evaluate investment portfolios, we don’t just look at their performance; we also consider the longevity and stability of the provider.

We would never recommend a portfolio that hasn't been running long enough to prove its resilience through various market conditions.

Furthermore, we ensure that the provider has a significant amount of assets under management, as we believe that smaller, less established firms may not have the stability or resources necessary to weather market fluctuations.

We build trust and relationships with providers

Once we have identified a portfolio that stands out in terms of performance and stability, the next step is to engage with the provider directly.

We take a personal approach and arrange meetings with the investment teams to build relationships and get to know the people behind the portfolio. We want to make sure we trust their ethos, understand their investment strategy, and believe that their performance is sustainable and not just a result of good luck.

We carefully evaluate the provider’s values and their long-term vision to make sure it aligns with ours, and gradually phase in new providers as we become more comfortable with their team, their approach, and the way they manage investments.

Our trusted providers are award winners and high performers

Two of our most trusted providers have won multiple awards and are known for their research-driven approach, creating bespoke portfolios that focus on quality assets.

Our providers’ consistent performance ensures we can provide strong, reliable portfolios tailored to our clients' needs.

The graph below shows the performance of strong-performing linear portfolios, with one of our providers being the best performer.

A continuously improving process

Our investment portfolio selection process is not static.

Each time we run our market scan, we identify areas for improvement, refine our strategies, and make adjustments based on the ever-changing landscape. This ensures that we are continually improving and offering the best investment options available to our clients.

In the end, our goal is simple: to offer the best portfolios we can find that help our clients meet their financial objectives while managing risk effectively.

Through ongoing independent research, a deep commitment to understanding the providers we work with, and a focus on long-term success, we ensure that our clients’ portfolios remain in the best possible hands.

Get in touch

To find out more about how we could help you build a portfolio that aligns with your unique risk profile and goals, get in touch.

Email info@mlpwealth.co.uk or call us on 020 8296 1799.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.