Presto! Wealth Advisor Fires Up its Model Portfolio & SMA Strategists Selection Guide Offering Advisor No-Cost Access to Over 400 Models Managing $40 Billion in Assets
After two years of the pandemic crush and elevated day-to-day volatility, many of us are looking forward to taking our eyes off the market and spending a little quality one-on-one time with clients.
It’s part of the natural industry cycle. After a shock, we review the landscape and reevaluate the systems and relationships we use to navigate our careers. That includes the portfolio and the way it gets managed.
Maybe you’re already using TAMPs or working with model-only investing. Maybe you’ve been allocating client assets on your own, diverting time and attention from other aspects of your practice during the pandemic.
Either way, it’s time to reposition. And it’s time for our first Model Portfolio & SMA Strategists Selection Guide. Download it HERE and check out the accompanying realtime Model Dashboard HERE.
The math is simple and the trend is clear. The process of managing wealth has evolved over the generations. Mutual funds came and went, leaving a world of ETFs and SMAs in their wake.
Each vehicle offered its own advantages and disadvantages. Each had its fans. And the task of fitting everything into a single client experience got more and more complex.
Allocating the assets in a rapidly changing market environment has become a fulltime job in itself. Model portfolios take over that job, effectively giving you the portfolio pie chart that best reflects your clients’ psychology and goals.
You could do it yourself. But you’re competing against some of the biggest names in the business like BlackRock, Invesco, Morningstar and endless boutiques.
And your immediate competitors are embracing the model approach. One number I saw had 20% annualized growth in terms of the amount of assets flooding into model portfolio management.
For some, the expansion curve has been even steeper. BlackRock’s models are now the fastest-growing component of the intermediary-sold product landscape, reportedly doubling annually for the last five years.
And yet that’s just the leading edge, currently accounting for only $60 billion of the cash circulating through that sprawling fund complex. There’s still time to be an early adopter here.
Numbers from Cerulli, Broadridge and other industry consultants see the model portfolios space topping $2 trillion by 2023 as advisors’ business needs get more complex. Our most recent audience survey suggests that 97% of the industry will move to a practice powered by models within the next 2 years.
How To Begin
As a natural entry point for advisors, The Wealth Advisor offers a complimentary digital Dashboard to take your clients beyond plain vanilla ETFs or conventional mutual fund. Just take a look around. See what’s available.
It’s dynamic, drawing on the latest data from multiple sources and the model providers themselves. Screen for the metrics that interest you. If you don’t find what you need, let us know.
Now you can once again become an investment virtuoso in the eyes of your clients. Offer them access to the best and brightest asset managers on the planet with this new complimentary selection guide: Model Portfolios & SMA Strategists Manager Profiles and Selection Guide 2022.
We’ve tabulated hundreds of top performing solutions from big names in the industry such as BlackRock and Invesco as well as hard-to-find boutique managers that have delivered consistent performance with managed risk year after year.
Each firm on the list is a winner. They’re literally the best in the world at what they do. And that’s why we’ve also broken out The Wealth Advisor's Top 100 Best Performing Model Portfolios and SMAs, not to mention category winners for 2021.
You'll learn all about the top performers are from detailed profile pages and select from the top 100 solutions that include performance and risk metrics such as expense ratio, drawdown, Sharpe Ratio, standard deviation and tracking error.
Some of these performers are truly breathtaking in their ability to bend what was once the efficient frontier . . . but they get lost on the infinite shelf, buried in the sheer diversity of niche strategies available as well as the endless index copycats.
We want to make sure advisors using these platforms don't miss the real innovators available, especially when so many of them outperformed everything else around.
If you want to give your clients differentiated outcomes and differentiate yourself in the process, I urge you to familiarize yourself with these new approaches to the classic portfolio. Each brings something different to the table.
Collectively, they're the future of asset management just as much as model portfolios themselves are the future of how advice gets delivered. Portfolio and platform, strategy and system. They go together like apps in the app store.
Guide And Dashboard
And evolution never sleeps. A once-a-year industry handbook is a nice compilation of information, but the details start getting outdated the minute we push the “publish” button. In an accelerated world, you need to make sure you're looking at the right numbers.
That's why we've launched the Digital Dashboard. It updates live whenever the listed companies need to signal new developments: new strategies, new tools, a helpful blog post you might want to see.
The Dashboard also incorporates live contact links. Feel free to use them. Use them all. Build relationships.
Got a tricky client situation off-the-shelf index funds can’t fix? Reach out. You’re not a passive consumer of cookie-cutter solutions here.
Everyone in our universe has a collaborative culture. Many were advisors themselves before deciding to focus on the inner workings of the market. They know what your pain points are and know how to help.
At a minimum, they know why some investment styles stopped working in the pandemic while others are as vibrant as ever. If your clients have drifted from their pre-2020 risk profiles, it’s time they got new allocations that fit them better.
After all, none of us are getting any younger. The best time to evolve is always today. That’s what we’re all about . . . and why we now cover the model investment universe in much greater depth.
This is the future. As of today, it’s our present. The MPSS Selection Guide and Digital Dashboard are already here.
