Displaying items by tag: model portfolios

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. 

ETFs have been on an ultra-high growth trajectory for over a decade now but at least part of that is being fueled by model portfolios. According to a Cerulli Associates report, ETFs are becoming a fundamental part of models. Asset managers and third-party strategist model providers now allocate about 54% to ETFs. 

Despite only 12% of financial adviser assets being held in practices primarily using model portfolios, Cerulli estimates that 24% are "model portfolio targets," reflecting client-specific customizations. BlackRock leads as the largest model provider with $84.3 billion in model assets, followed by Capital Group with $75.4 billion.

ETFs have surpassed mutual fund assets within models, and the trend is expected to continue as more products reach their three- and five-year track records, according to Matt Apkarian of Cerulli. The report also highlights the trend towards customization within models, combining ETFs with separately managed accounts to meet individual client needs.

Finsum: Technology augments the current financial offerings to ultimately drive innovation. 

WisdomTree Inc. has launched Portfolio Solutions to help advisors create and manage client portfolios efficiently. With $109 billion in assets under management, WisdomTree offers three distinct services: portfolio consultations for advisor-built portfolios, CIO-managed model portfolios, and a shared CIO service for collaborative portfolio management. 

These services aim to streamline asset allocation, save time, and enhance advisor-client communication. Thomas Skrobe, head of product solutions at WisdomTree, emphasized the growth opportunities these services provide for advisors. 

The firm has seen significant adoption, with 2,000 U.S. advisors using WisdomTree managed models and aims to add 1,000 more by the end of the year.

Finsum: The new technology is abundant for portfolio construction, and advisors can lean on the analytics they provide to garner deeper insight. 

The demand for technology to support model portfolio management and portfolio construction is on the rise as firms aim to centralize and scale these services to stay competitive. Model portfolios are becoming a game-changer for financial advisors, with significant growth expected over the next decade due to their efficiency in diversification, risk management, and tailored financial planning. 

Advisors increasingly rely on asset managers to help manage these portfolios, and Jacobi's technology facilitates this by centralizing performance analytics, integrating investment workflows, and generating professional client reports. T. Rowe Price, an early adopter, has experienced improved efficiency and client engagement through Jacobi's platform. 

Model portfolios use technology to enhances team collaboration and meets rising client demands, and they are driving efficiency and expanding market distribution for asset managers.

Finsum: Model portfolios have been one of the biggest technological innovations for financial advisors in the last decade.