Richmond Wealth''s partnership with asset manager LGIM will provide it with six competitively priced model portfolios for its clients, which offer strategies with risk adjusted returns as well as specific risk return profiles for a range of investors.

The tailored model portfolios aim to offer attractive returns in line with Richmond’s clients' investment goals. They will draw on LGIM’s broad suite of passive vehicles including ETFs as well as investing in active funds managed by LGIM and third-party managers, the firm said in a statement. 

The LGIM team will take on the regular reviews and rebalancing of the model portfolios to ensure that investments are kept aligned with investors’ risk profiles. LGIM’s tailored MPS offering will also leverage data and investment insights from their asset allocation team comprising more than 40 investment professionals, headed up by Emiel van den Heiligenberg, the firm continued.

As part of the partnership, LGIM will take on the mandatory due diligence required as part of new consumer duty rules. This, coupled with the management of risk, compliance and reporting functions, will generate more time for the team at Richmond Wealth to focus on financial advice and the day-to-day engagement with clients.

LGIM has established a risk management framework and a dedicated governance committee to ensure that portfolios remain on track. The LGIM asset allocation team oversees £65 billion ($78 billion) in multi-asset funds. It will work in partnership with LGIM’s solutions team, which oversees £200 billion of institutional client portfolios, to bring together an array of expertise and experience from across LGIM. Justin Onuekwusi, head of retail multi asset funds at LGIM, will lead the Model Portfolio Service proposition, the firm added.

Chris Bryans, a senior partner at Richmond Wealth added: “The partnership is good news for our clients who will benefit from LGIM’s scale and model portfolio investment expertise, targeting returns in line with their risk and investment goals. It will also help Richmond Wealth focus on client service by outsourcing reporting and risk functions, while also benefitting from LGIM’s data and insight.”

LGIM’s MPS offering was launched in June 2021 with the initial pricing set at an annual management fee of 6 bps. To support the growing client business, the firm has also added an advisor hub to the platform programme which can be labelled to suit advisor needs.