Pacific Asset Management and BlackRock collaboration creates step-change in advisory portfolios

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  • New portfolios powered by exclusive combination of BlackRock index funds and PAM’s dynamic multi-asset strategies
  • Technologically advanced “centralised investment proposition in a box” solves key issues for adviser firms managing advisory portfolios

Pacific Asset Management (PAM) has announced the expansion of its portfolio service with the launch of five additional multi-asset model portfolios developed exclusively with global asset manager, BlackRock.  The new portfolios will be called, Pacific Model Portfolio Solutions: The iShares Edition.

PAM’s technology driven, adviser-enabled proposition bridges the gap between ‘advisory’ and ‘DFM’ model portfolios, solving many of the problems faced by firms running in-house advisory models across multiple platforms.


The ‘in-sourced’ centralised investment proposition (CIP), streamlines investment processes and reporting, and maximises infrastructure efficiency for adviser businesses, allowing advisers to remain in control of client relationships and retain ownership and oversight of their advisory model portfolios.

The CGT-efficient, 0% DFM fee portfolios provide a credible alternative to outsourcing to a traditional DFM, where bulk client transition can often take more than a year.  Advisory models provide an important part of most financial advisers CIP and PAM believes this is set to continue. PAM commits to solving the well-documented frustrations and operational complexity of advisory portfolios in less than 90 days.

For large advisers and consolidators, this 90-day commitment speeds up the process of aligning multiple books of business across different platforms into one common firm-wide CIP, significantly reducing integration time, complexity and, as result, regulatory risk.


The five risk-targeted model portfolios, managed by PAM’s multi-asset investment team, combine both ‘efficient’ and ‘dynamic’ investment engines. For the ‘efficient’ engine, working with BlackRock’s market leading index tracking capabilities, PAM has blended equity and fixed income index trackers, specific to the risk profiles of each portfolio. To complement this, the actively managed, ‘dynamic’ overlay harnesses the benefits of PAM’s unitised multi-asset fund structures to tactically tilt exposure to suit the prevailing market conditions.  The result leads to a unified, operationally and cost-efficient portfolio that combines the best of market-cap weighted passive investment styles with forward looking active managers, factor tilts and direct investments.

Pacific Model Portfolio Solutions: The iShares Edition is delivered with adviser branded materials and a range of adviser tools accessed via a web-based portal.  The portfolios are plug-and-play and available on all leading platforms.  Additional features, such as PAM’s Smart-Rebalancing technology is currently exclusively available on Embark and Hubwise. The portfolios’ ongoing charges figure (OCF) will be below 0.75%.

Matthew Lamb, CEO, Pacific Asset Management, said: “We have always said that the alpha is in the advice, and this new range chimes exactly with that belief.  We strongly feel with the right support financial advisers should retain the ability to run advisory models.  Whilst at Pacific we are hugely proud of our technology eco-system and support we can offer – our primary goal has always been to work with advisers to improve transparency, cost and consistency of client outcomes. If much of the alpha is in the advice, to remain relevant we must continue to move the asset management industry forward. Pacific Model Portfolio Solutions: The iShares Edition does exactly that.”


Joe Parkin, Head of UK Banks and Digital Distribution, BlackRock, commented: “As regulatory, operational, and administrative pressures continue to mount, the cost of managing in-house advisory portfolios has never been greater and this exciting range of model portfolios aims to take the pressure off advisers. We are excited to be collaborating with Pacific Asset Management to bring scale and institutional investment resources to advisers in the UK through a ground-breaking, tech-enabled proposition.”


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