Last week, BlackRock made a massive splash by introducing a new set of model portfolios targeted explicitly at female investors. This idea could just be the beginning in addressing specific targeted objectives for different investor demographics using model portfolios. BR set the portfolios to tune in the balance to better suit women’s objective outcomes, but this could be expanded beyond just female investors. For instance, the right mix of assets could be selected to suit those facing higher amounts of college debt or those with different lifestyle preferences. Model portfolios are the first investment class we have that is naturally oriented to solve these problems. There is a market for asset classes that can target different demographics and lifestyles all while making an advisor's job simpler.

Finsum: BR’s new set of models were an ingenious decision and better financial models can help people address their more specific financial needs.