Find out more about our investment services

If you’d like to speak to our team about how we can help your firm manage it’s CIP, call us during office hours Monday to Friday on 020 4599 6475, or email info@copia.co.uk.

This article, like our investment services, is intended for regulated financial advisers and investment professionals only. Copia does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such. Remember, the value of investments will fluctuate, and capital is at risk.

Find out more about our investment services

If you’d like to speak to our team about how we can help your firm manage it’s CIP, call us during office hours Monday to Friday on 020 4599 6475, or email info@copia.co.uk.

This article, like our investment services, is intended for regulated financial advisers and investment professionals only. Copia does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such. Remember, the value of investments will fluctuate, and capital is at risk.

Next week, we’ll be publishing CIPs in 2026: Tuning the Engine for Growth, the third edition of our Centralised Investment Proposition (CIP) research with the lang cat. This research, conducted in 2022, 2024 and 2026, looks at how advice firms are adapting their CIP to changing market and regulatory conditions.

The findings of the three reports highlight a clear move towards outsourcing. In 2022, 51% of firms ran portfolios in-house for the majority of clients, with 38% using outsourced MPS. By 2026, that has reversed, with 63% of firms now mostly outsourcing, compared with 23% running portfolios predominantly in-house.

Changing regulations, from MiFID II to Consumer Duty, have made running a CIP in-house at scale progressively harder, driving the shift to outsourcing. While outsourcing can reduce adviser administration and risk, there are still operational considerations.

In this series of blogs, we look at how to get the most out of outsourcing while staying on the right side of the regulator, sharing three tips:

1. Make sure you have formal governance in place
2. Hold providers to account
3. Think about the direction of travel

Across the series, we explain that outsourcing only delivers on its promise to improve your processes, your compliance position and your clients’ outcomes when it is managed properly. That means solid governance behind the initial decision, holding providers to account once the arrangement is in place, and a clear view of where the relationship needs to go as your firm grows.

Tips for CIP outsourcing 1: Making sure you have formal governance in place

Our first CIP report, The Centralised Investment Proposition: An Overheating Engine? in 2022 predicted that Consumer Duty, then newly introduced, would make it harder for firms to manage investments in-house, and that this would push more firms towards outsourcing. Our subsequent reports, An Overheating CIP 2024: Ways to cool the engine and CIPs in 2026: Tuning the Engine for Growth, have confirmed this. Monitoring and documenting investments have become harder when managing a CIP in-house, and 63% of firms now outsource at least some of their clients’ investments as a result.

In February 2025, the FCA sent providers a supervisory letter setting out a multi-firm review of MPS, looking at how firms are applying the Duty to give confidence that investors are receiving good outcomes. The regulator’s initial focus for this review has been on providers. In May 2026, it sent an information request to 40 wealth and asset managers asking how they construct, price and govern their Model Portfolio Services ranges, with findings due in early 2027. It isn’t certain the FCA’s scrutiny will extend to advice firms directly, but two areas are worth reviewing now regardless, documentation and monitoring, so formal governance holds up if regulatory attention does turn to the advice side.

The FCA has recently published a review into how firms approach products and services in relation to Consumer Duty more generally. Examples of good and bad practice it identified can be found here: Products and services: good practice and areas for improvement | FCA. It looks likely that the regulator will be expecting firms to place more focus on how they review management information (MI) and data to inform decisions related to their MPS providers.

Documentation

Written documentation of process is not optional when outsourcing. Under Consumer Duty, firms must be able to evidence that their decisions were made with delivering fair value to the client in mind. A formal documentation process protects the firm as much as the client.

The most important documents are the CIP policy and design, setting out the thinking behind the operation and how the strategy is implemented, and 87% of firms already have this in place. However, beyond that, documentation is uneven. Our research found that 66% of firms have a documented due diligence framework, 53% use an external research or ratings provider and only 35% have compliance-led oversight of their proposition.

These are all part of the same evidence base as the CIP policy itself, so it is worth checking they are properly documented. If it isn’t written down as part of a formal process, it doesn’t exist in the eyes of the regulator. Explaining a decision, such as choosing an MPS provider, without evidence of market-wide research will not satisfy the regulator.

Monitoring

Our 2026 research also found that 74% of firms run a formal monitoring process, but only 60% have an investment committee. More than half of advice firms are single-adviser businesses, where the investment committee, the adviser and the office manager are often the same person. A formal committee sitting round a table is unrealistic for many firms, but the structure is less important than the practice.

A formal committee does not have to mean a board with segmented roles covering every aspect of investment decision making within the CIP. It is about evidencing a considered approach to investment decisions, one that is monitored, adjusted and documented.

Outsourcing can help with this, but it does not happen automatically. For advisers who want a more engaged relationship with their DFM, a specialist solution such as custom MPS is worth considering.

Provider accountability

Documentation and monitoring should sit at the centre of any CIP arrangement. Outsourcing takes some of the investment weight off the adviser, but it doesn’t remove the need for the governance behind it. Providers carry some of that responsibility too, and in our next blog we look at what to expect from a provider once the arrangement is running, and what should trigger a closer look at the relationship.

Find out more about our investment services

If you’d like to speak to our team about how we can help your firm manage it’s CIP, call us during office hours Monday to Friday on 020 4599 6475, or email info@copia.co.uk.

This article, like our investment services, is intended for regulated financial advisers and investment professionals only. Copia does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such. Remember, the value of investments will fluctuate, and capital is at risk.

Since I joined Copia back in April, I have been working with the team to review our proposition which in turn should help you better support your clients.

I am delighted that we will be heading into September with four new additions to strengthen our Sales and Investment teams. This is a big step forward on our path to get the right expertise to meet our ambitious plans for the future.

Gary Stirrup joined us last month as our new Director of Sales. He brings a wealth of experience across platforms, asset management, advisory and discretionary. Three weeks ago, Jake Boylan joined Gary’s team as our new Business Development Manager. Jake has held BDM and Investment Product Manager roles at Octopus Investments and has already hit the ground running in his first few weeks with the business and will offer desk-based support to our clients. I’m also happy to confirm that Elliot Clifford, who some of you have met already, has officially moved over from Wealthtime to work as Copia’s dedicated Marketing Manager.

At the start of August, Andy O’Shea and Oliver O’Shea joined us from the Canterbury based advice firm, Pharon. Andy has managed Pharon’s investment proposition for 17 years. He will join Pete and Richard as our third Senior Portfolio Manager, adding a huge amount of investment knowledge and experience to our team. Oliver has worked with his father Andy for the last eight years and will continue to work very closely with him. His arrival adds further expertise to our analyst team. Andy and Oliver also share a similar investment approach to our existing Copia philosophy.  

As we move forward and into 2027, we will continue to build out the team with strategic new hires when the right opportunities arise.

Having just passed her seven year anniversary with Copia, we asked our Head of Operations, Marina Contato to take some time out of her busy day to reflect on her time with us.

Going back seven years – how did you start working at Copia? What were you doing before?

In 2016, I moved to London after my husband was transferred from his job in Brazil to the office here. Once we settled in, I spent some time studying English and getting used to life in a new country, which was an adventure on its own.

After that, I resumed my career in financial services, joining the South Korean firm Mirae Asset Global Investments, where I was responsible for trade settlement and reconciliations. Then, in April 2019, I joined Copia. 

What was Copia like when you started and how has the business changed?

Copia has changed a lot over the last seven years. When I first joined, the team was made up of just five people. As the business grew and we welcomed more clients each year, the team naturally expanded as well. Over time, we hired more portfolio managers and analysts and built a dedicated Copia Sales team.

It’s been fantastic to see the company grow organically, improve the service we provide to existing clients, attract new ones, and expand our product range along the way.

What does your typical day look like now?

When I joined Copia, I started on the investment side of the business, where my days followed a more structured routine. However, since moving into Operations in 2022, I can honestly say there is no such thing as a “typical day”.

Each day is different and usually involves a mix of overseeing operational processes, managing our platforms and technology providers, supporting the Investment and Compliance teams, and leading internal operational projects. It definitely keeps things interesting!

What aspect of your time here are you most proud of?

I believe that being able to contribute to Copia’s overall growth is what makes me most proud. Being part of this journey, from the early days to where we are now, has been incredibly rewarding.

If you weren’t working for Copia would do you think you’d be doing instead?

Travelling around the world and being a travel blogger sounds like a pretty good alternative career to me!

Have you got any tips for people who’ve just started working in the financial services sector?

Be curious and always be willing to learn. Invest in your communication skills, build your network, and – most importantly – be a nice person to everyone. It really does make a difference!

Away from work, what’s your ethos when it comes to money and looking after your finances?

I’ve always believed that managing money is ultimately about balance – planning for the future while still enjoying the present. For me, it’s less about chasing short‑term gains and more about being consistent and disciplined.

I try to keep things simple: spend consciously, save regularly, and invest with a long‑term mindset. It’s about staying calm through market ups and downs and focusing on the bigger picture rather than short‑term noise.

What’s worth spending more money on?

I would say experiences, especially travel. Travel gives you a different perspective, helps you adapt to new situations, and creates memories that last much longer than material purchases.

And I also believe it’s worth spending a bit more on things that genuinely improve your daily life, whether that’s comfort, quality, or something that saves you time.

After a prolonged period in which strong equity returns largely masked underlying risks, conditions have become more unsettled in recent years. Conflicts, trade tensions and geopolitical uncertainty are refocusing attention on volatility, with advisers once again having frequent conversations with clients about market shocks, sequencing risk (selling investments to support income payments) and investing during falling markets.

And the situation shows little sign of improving. Valuations remain elevated in some parts of global equity markets and the current conflict in Iran has only made the economic outlook more uncertain. Wesleyan adviser research finds that 92% [1]expect investment markets will be more volatile in 2026, driven by uncertainty over the global economy and the rate of UK inflation as well as ongoing global conflicts and concerns about technology valuations, including AI companies.

Why now?

Of course, volatility isn’t a new problem for investors. However, the difference this time is that its resurfacing coincides with the Government encouraging broader retail participation in markets. More than four in five advisers (82%) believe this push to build a stronger retail investment culture will make client concerns around market volatility a bigger issue.

The majority of respondents (84%) believe the performance of their clients’ investments is under threat due to volatility next year, suggesting this new wave of less experienced investors will encounter market stress early in their investment journey. Policy momentum is driving greater participation in markets just as advisers expect conditions to become more unstable. Almost half of advisers (45%) expect between 20% and 40% of their clients to be put off investing in growth assets such as equities, or even dependable assets such as bonds and property.

Portfolio construction in volatile conditions

Wesleyan’s research highlights a range of strategies firms are using to help their clients navigate volatility. While six in ten (60%) plan to issue communications discussing what’s driving market movements, the potential outlook and what it may mean for clients’ financial goals, a sizeable group are also considering investment changes. Nearly half (48%) are seeking further diversification opportunities, such as commodities or private equity, and the same proportion (48%) said they will start or increase investments in a ‘smoothed’ fund.

Smoothed with-profits funds aim to provide a degree of downside protection during periods of market stress. They hold back some returns in stronger equity markets to help support returns when markets fall, reducing the impact of short-term volatility. This can offer greater stability for clients and help them avoid making reactive decisions during periods of market stress.

How Copia Select Smoothed is different

Copia Select Smoothed portfolios leverage the benefits of with-profits funds alongside complementary assets to give advisers a practical solution for clients who want to stay invested but are concerned about volatility.

Each risk-rated portfolio includes a 30% allocation to Wesleyan’s smoothed With Profits Fund, with the remaining 70% invested across a diversified mix of assets selected and overseen by Copia’s expert investment team.

This structure allows advisers to combine the stability created by the on-platform fund’s smoothing mechanism with the long-term growth potential of an actively managed multi-asset portfolio, while maintaining liquidity and transparency.

The approach can help mitigate sequencing risk, helping clients drawing an income or planning to do so in the near future. As the with-profits part of the portfolio reserves gains in strong markets to support payouts in weak years, investors are less likely to be forced to sell assets during market downturns to generate normal income. It can also be attractive to more cautious investors seeking multi-asset exposure with lower volatility than a traditional managed portfolio.

To maintain the potential for long-term growth, periods of heightened volatility require careful portfolio construction rather than wholesale withdrawal from equities and bonds. With advisers believing volatility will remain elevated at a time when more retail investors are expected to enter the market, solutions that help clients remain invested without exposing them fully to short-term market swings may become increasingly relevant. Blending smoothing with active portfolio management provides a pragmatic way for advisers to manage volatility while maintaining long-term investment discipline.

This article is intended for regulated financial advisers and investment professionals only. Copia does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such. Remember, the value of investments will fluctuate, and capital is at risk.

^[1] 2026 predicted to be a year of market volatility, Wesleyan, 29 January 2026

Want to find out more?

Watch our Senior Portfolio Manager, Pete Wasko discuss managing the Smoothed portfolios. 

If you think our Smoothed portfolios might be suitable for some of your clients, call us on 020 4599 6475 or get in touch online. 

In fast‑moving financial markets, having a disciplined approach to managing risk is essential. Here at Copia we use a range of quantitative and qualitative tools to help guide portfolio decisions. One of the most important of these is our Risk Barometer; a structured, data‑driven indicator designed to help us assess fundamental market conditions and adjust equity exposure accordingly.

The Risk Barometer is not a black‑box model, nor does it replace the experience and judgement of our portfolio managers. Instead, it provides an easy‑to‑interpret score that helps inform how much equity risk we take on relative to each client’s Strategic Asset Allocation (SAA). Its core purpose is simple: help protect portfolios from more significant losses during periods of market stress, while allowing us to maintain appropriate levels of risk when conditions are supportive.

A Clear Pulse Check on Market Conditions

The Risk Barometer produces a score between –1% and +1%. Although the output is easy to follow, it is built from a thoughtful assessment of global market behaviour. The tool looks across three major areas, namely equities, sovereign debt, and credit, to capture a broad picture of financial conditions.

The largest input comes from the equity component, driving 60% of the reading, which analyses a diversified universe of global exchange‑traded funds. By looking at both long and short‑term market trends, it helps us understand whether equities are broadly gaining momentum or showing signs of strain.

Sovereign debt markets, making up 20% of the score, tell us something about the economic environment. When government bond yield curves invert, meaning shorter‑term yields rise above longer‑term ones, it has historically pointed to slower economic growth ahead.

The final component, credit markets, offer insight into corporate health. Rising credit default swap spreads often reflect rising concern about company balance sheets, and therefore greater overall financial stress.

Bringing these components together gives us a well‑rounded perspective on market dynamics that is grounded in observable data rather than subjective interpretation.

From Signal to Action: What the Score Means for Portfolios

While the Risk Barometer does not dictate specific trades, it helps determine the appropriate level of equity exposure at different points in the market cycle. To keep things intuitive, the score places market conditions into one of three zones:

• Green, where markets appear healthy and portfolios are positioned to maximise equity allocation within the ranges of the SAA.
• Amber, where caution is appropriate and equity exposure is shifted to a neutral allocation.
• Red, where conditions look more fragile and risks are scaled back to the bottom of their ranges.

This “brake and double‑brake” framework gives clients confidence that portfolios will not remain heavily exposed to equity market risk during times of rising fundamental financial stress. Conversely, it ensures we remain invested, and do not de‑risk too early when conditions are more supportive.

In the current geo-political and investment landscape where uncertainty is a constant, the Risk Barometer provides a clear, data‑driven assessment of underlying market conditions and helps us adjust equity exposure in a measured and transparent way. Its strength lies not in predicting the future, but in supporting better decisions, particularly when markets become difficult.

The Risk Barometer has become a fundamental part of how we deliver long‑term and risk‑aware investment outcomes. For clients, this means their portfolios are better prepared for turbulent periods, while still positioned to benefit when conditions improve.

This article is intended for regulated financial advisers and investment professionals only. Copia does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such. Remember, the value of investments will fluctuate, and capital is at risk.

Want to find out more?

Angus and the team update the Risk Barometer at the end of every month, you can check the latest reading here. 

If you’d like to find out more about how our tools and services can help you and your clients, send us a message or call 020 4599 6475.

The ongoing situation in Iran has created a new wave of uncertainty for investors. One notable feature of the conflict has been the sheer volume of information being released, which has the potential to shift markets in the short term. History suggests that trying to time markets during periods of volatility is rarely a reliable strategy.

In many ways, the situation in Iran represents a concentrated example of the current trading landscape in which volatility should be anticipated. We’ve seen increasingly frequent instances of instability over the past couple of years, largely driven by geopolitical friction.

Investing during conflicts and instability ultimately requires a well-considered strategy. Looking at both current developments and past events suggests that investors who focus on the broader economic and market picture are generally better positioned to navigate volatility.

The question marks around Iran

There are several aspects of the current conflict that differ from previous military action involving Iran. Rhetoric from the Trump administration has implied the possibility of an extended engagement. The situation remains highly uncertain, but market reaction so far has seen most major indices experience short-term declines.

The impact on oil is most closely watched, with the price of Brent crude moving above $100 for the first time in four years.[1] Iran has been targeting energy and civilian infrastructure in neighbouring Gulf states and limited passage through the Strait of Hormuz, a key global supply route.

Disruption in this area has clear implications for energy prices and inflation. Markets have already reduced expectations for future interest rate cuts.[2] To date, economies most dependent on energy imports have experienced the greatest market stress.

It’s worth noting that we’re yet to reach the market declines seen during previous periods of volatility, including the Liberation Day sell-off. However, even if the current conflict is resolved relatively quickly, several potentially disruptive elements remain, including US tariff policy and concerns around valuations in parts of the technology sector. Investment strategies need to take account of these ongoing risks.  

Peter Wasko, Senior Portfolio  Manager

Our innovative retirement portfolios, Copia Select: Retirement Income (RI) and Copia Select: Retirement Income Plus (RI+) have passed their third anniversary. Launched on 28 February 2023, the portfolios are designed to address the needs of investors in decumulation and delivering sustainable income through different market conditions.

Designed for the realities of retirement

RI and RI+ were purpose-built to support advisers in delivering good outcomes to clients at or in retirement and meet the evolving regulatory expectations around delivering a sustainable income in retirement.

The portfolios recognise the need to take a distinct approach to investing for decumulation versus accumulation. They aim to maximise returns for investors while mitigating the specific risks associated with taking an income from investments.

The RI portfolios balance capital growth potential with the need for stability and income sustainability. The portfolios follow a similar quantitative methodology to our highly successful accumulation models, but a greater proportion is allocated to less traditional assets, such as hedge funds, infrastructure, real estate and commodities, which provide a diversified alternative exposure. These assets typically have lower correlation to equity and fixed income, helping to reduce the impact of unfavourable market conditions on investors taking an income.

The RI+ portfolios are designed to complement guaranteed income, delivered by Just Group’s Secure Lifetime Income, alongside a managed portfolio to increase the opportunity to outperform and provide greater certainty of outcome in retirement without increasing the overall investment risk. Using a guaranteed income asset alongside a managed portfolio helps optimise asset allocation in retirement income portfolios, while achieving more certainty over investment outcomes.

First published in WealthWise on 3 February 2026