What is a Managed Portfolio?

A Managed Portfolio is an investment scheme in which the money you want to invest is handled by professional investment experts and money managers, who make decisions on what investments to buy, which to sell and which to hold. With a Managed Portfolio, the risk is spread across different investments and assets.

This means you will benefit from professional expertise and advice, as well as ongoing investment management, unlike other investment schemes where they are not actively managed. It is the responsibility of the portfolio manager to regularly update you as to what is happening with your investment, they should also ensure that the portfolio is suitable for any changes in your circumstances, and ensure that they utilise the most tax-efficient methods of investment.

A model portfolio can be put together by an investment expert and comes with advice, reviews and regular contact from the company handling the money. Being a model portfolio, this is not a bespoke service meaning any changes made to the portfolio are the same for every person who invested in the model portfolio.

Managed Portfolios look after your money over the long term, making all the management decisions and providing day-to-day management to ensure the portfolio continues to meet the investors’ goals.

With Managed Portfolios, the investor will not need to research potential investments or manage their investment, which can be quite time consuming, meaning it is an all-in-one service provided by the investment experts.

When deciding where to make investments, the investments experts use several tools including FTSE 100 research, forecast and their own professional judgment. They will also take into account your risk appetite, as well as anything you have specifically requested for in your investment.

Most investment companies will offer a choice of portfolios, which come with different management styles and risk levels. So whatever the investors risk appetite, there will be a portfolio that suits them. The risk of the investments can be tailored to the investors’ individual needs. Part of the investment strategy will be to invest in a wide variety of investments and asset classes, giving a broader range of investment, and potentially less risk of a loss.

It is important to note that the value of the investors’ portfolio can go up or down depending on the investments made by the portfolio manager. It is possible that the portfolio will be worth less than the initial contribution at the end of the term. It should be noted that there are varying management fees that will apply to the investments, and these could be taken from the capital if the investments do not make a profit.

How were Managed Portfolios mis-sold?

While Managed Portfolios appear to be an advantageous investment, if you are provided with incorrect or unsuitable advice from the Portfolio Manager and this leads to a money loss, this may constitute mis-selling.

When you purchase a Managed Portfolio, the sales advisor should have discussed:

  • Your financial situation, including any existing investments, or previous experience in this area.
  • What you understand about the Managed Portfolio, including how they work and the risks associated with them.
  • Your attitude towards risk – did you want a low risk investment or a higher risk investment?
  • What you wanted to achieve with the investment.
  • Your circumstances such as age, disability and occupation security.
  • Any tax implications that may arise and who is responsible for dealing with any issues.

If some, or even none, of the above was discussed with you, then there may have been a mis-sell.

How can we help?

At Cooper Stern we are dedicated to advising individuals and businesses on potentially mis-sold complex financial products.

We can advise you on the strengths and weaknesses of potential claims for mis-sold Managed Portfolios, and then make the claim on your behalf.

If you feel you have been mis-sold a Managed Portfolio and want us to look into the matter for you please get in touch. You can fill in our simple online enquiry form and one of our expert advisors will call you back to discuss your mis-sold financial product in more detail. Alternatively, you can call us on 01204 328 287 and we will be more than happy to discuss your queries.

how can we help you?

Have any questions? Get in touch with the Cooper Stern team today by submitting an inquiry online.

There are no substantial up-front costs, and our clients like that. The claims we have settled so far have been on a full redress basis. The banks are misbehaving by making offers to businesses, partially repaying what they have paid, and saying they do not need legal advice and making very low offers. I would urge businesses who are affected to get in touch with us before it is too late.

Dan Fallows
Director, Cooper Stern