Displaying items by tag: model portfolios

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.

State Street Global Advisors (SSGA) is introducing a new 'high growth' option within its Risk-Based ETF Model Portfolios, aiming to attract younger investors. The portfolio allocates 89% to growth assets and 11% to defensive assets. 

Kathleen Gallagher, SSGA managing director, highlights this move as a response to adviser demand for cost-effective portfolios catering to clients in their accumulation phase. The high growth model will be available on Praemium, Hub24, and Netwealth platforms.

This complements SSGA’s existing moderate, balanced, and growth portfolios, focusing on strategic asset allocation and risk management.

Finsum: This option could be a great opportunity to get model adoption among younger clientele 

WisdomTree has partnered with Trading 212 to introduce six ETF model portfolios, allowing UK and European retail investors to access pre-built core and thematic portfolios through the Trading 212 app. 

The three core portfolios—Conservative, Moderate, and Aggressive—offer diversified exposure to equities, bonds, and commodities. Additionally, investors can choose from Multi-Thematic, Tech, and Environmental thematic portfolios. 

This collaboration aims to simplify portfolio building for retail investors by leveraging WisdomTree's institutional expertise to help meet long-term investment goals. Trading 212 manages £4bn in client assets with 3 million funded accounts.

Finsum: Thematic models might be a way to get into technology as it’s poised to rally with interest rates settled or about to be cut.