Displaying items by tag: model portfolios

Goldman Sachs Asset Management has partnered with GeoWealth to deliver customizable, open-architecture investment models for registered investment advisors (RIAs). These models, accessible through GeoWealth’s unified managed accounts (UMA) platform, include SMAs, ETFs, direct indexing, mutual funds, and alternatives, allowing RIAs to tailor them to clients’ unique goals and tax considerations. 

Starting with mutual fund and ETF models, Goldman plans to expand offerings to include equity SMAs, fixed-income solutions, and direct indexing in the coming months. Responding to demand from RIAs for scalable, personalized portfolio solutions, the partnership aims to streamline account management, simplify paperwork, and boost operational efficiency. 

Goldman’s multi-asset solutions team will power these custom models, leveraging the firm’s capabilities with API integrations across 42 tech vendors. 

Finsum: These solutions can increase flexibility greatly for RIAs and provide a streamlined process for clientele. 

Advisors today face increasing challenges in helping clients achieve and maintain financial independence. With high U.S. stock valuations predicting lower future returns, and bond yields offering minimal real returns, portfolio strategies need to evolve.

 Clients are also grappling with rising living costs, longer life spans, and elevated housing prices, creating greater financial strain. Factor investing offers a solution, selecting securities based on traits like momentum, quality, and low volatility, which have historically outperformed. 

These strategies can be implemented cost-effectively through ETFs and optimized for tax efficiency within households. Although no factor guarantees success in every market, a diversified approach to factor investing provides a long-term opportunity for outperformance.

Finsum: Factor investing is robust proven strategy that can bring legitacy to new advisors or those looking to expand client adoption. 

Model portfolios simplify portfolio management, allowing financial advisors to deliver customized investment strategies without starting from scratch. Leveraging technology, advisors can access high-quality, ready-made models that can be adjusted to meet specific client needs. 

Customizing these portfolios provides a balance between using institutional expertise and offering personalized service. Advanced analytics tools are seamlessly integrated, enabling advisors to filter, screen, and select the best-performing assets based on millions of data points.

Tracking performance over time with precision ensures that clients see accurate, realistic outcomes. This approach gives advisors a competitive edge, allowing them to scale their practice while maintaining individualized attention.

Finsum: Having the analytics at your fingertips can really aid in distilling complex information to clients.

Crypto ETFs are expected to be integrated into model portfolios by late 2024, according to Samara Cohen, BlackRock’s Chief Investment Officer for ETFs. Cohen emphasized the roles of Bitcoin and Ether as portfolio diversifiers, noting that major wirehouses are currently conducting due diligence on these assets. 

BlackRock projects significant growth in model portfolio management, anticipating an increase from $4.2 trillion to $10 trillion over the next five years. 

Cohen also mentioned that while Bitcoin and Ether are gaining traction, the introduction of spot ETFs for altcoins like Solana is unlikely in the near term. Despite net outflows from spot Ether ETFs since their launch, Cohen remains optimistic, viewing them as valuable entry points for investors seeking ETH exposure in their portfolios.

Finsum: Integration into standard financial products has been critical to cryptos success in recent years. 

Leading the industry, WisdomTree, Inc. launched its Portfolio Solutions program to better support RIAs and wealth management firms. This program aims to help advisory firms customize client portfolios and embrace model portfolios, offering significant time efficiencies.

The platform offers a range of services, including examining current model portfolios, stress-testing assets, and providing CIO-managed model portfolios. Additionally, advisors can collaborate with WisdomTree’s team for trading, rebalancing, and tax optimization tasks.

The program helps advisors allocate more time to client-facing activities and improve their overall service. WisdomTree has also expanded its Portfolio Solutions team with the strategic hire of Samuel Rines, a Macro Strategist, to provide geopolitically risk-aware portfolios.

Finsum: These technologies allow advisors to deepen their relationships with clients by freeing up time and understanding interests.