Standard & Poor's (S&P) Fund Services has launched a model portfolio service for financial advisers.
The ratings agency said its S&P Portfolio Services (SPPS) solution was developed specifically by its wealth management services (WMS) team for Australia's retail intermediaries.
S&P Fund Services managing director Mark Hoven said SPPS was developed to align with the seven risk-profile asset allocations common to widely used risk-profiling software.
"SPPS is specifically designed for advice groups that are looking for a cost-effective, non-tailored [approved product list] and model portfolio solution," Hoven said in a statement.
S&P's WMS division has focused mainly on the funds management industry, and the SPPS is its first attempt at a model portfolio offering aimed at advisers.
Advice groups are scrambling to cut costs in preparation for the federal government's proposed Future of Financial Advice reforms.
Meanwhile, a number of factors have been exerting downward pressure on platform and other model portfolio providers, including increased competition, technological developments and an aging population.
"Combining capital market inputs with local qualitative assessments of broadly available managed funds, the WMS team identifies strategies that it considers best of breed to construct a non-tailored approved product list and model portfolio suite," Hoven said.
S&P said it would monitor and update the portfolios regularly and as part of the service provide subscribers with monthly performance updates and comprehensive quarterly reports, including economic commentaries.
