Displaying items by tag: model portfolios

According to a recent report from Cerulli Associates, increased demand from financial advisors had led fund managers to include separately managed account (SMA) strategies into their model portfolios. Matt Apkarian, a senior analyst at Cerulli, told FundFire “Typically, model portfolios tap mutual funds and exchange-traded funds, but large asset managers are now seeing demand for SMAs, given their customization and tax-management capabilities.” According to FundFire, citing data from Cerulli, assets in model portfolios hit $2 trillion through the end of 2021. That was a 22% increase from the prior year. That included assets from home-office model portfolios and portfolios offered by asset managers, but excluded advisor-built model portfolios. Cerulli attributes the rise in assets to home offices directing their advisors to outsource investment management. The firm also believes that home offices will increase their model portfolio capabilities to compete with third-party strategists.


Finsum: SMA strategies are being incorporated into model portfolios as a result of advisor demand for more customization and tax management.

Published in Wealth Management
Thursday, 22 September 2022 05:14

Carson Group Announces New Model Portfolio Hub

The Carson Group recently announced several new developments during a Partner Summit, including a new model portfolio hub. The company, which was founded in 1983, is made up of three related businesses including a wealth management firm, a coaching network, and a partnership established in 2012 with approximately 120 affiliated firms. The firm’s announcements included updates and additions to its rapidly growing platform, including a lead generation program, a new investment research portal, additional alternative investment options, and a “model hub” to let advisors administer multiple accounts simultaneously. Burt White, Chief Strategy Office of Carson said this of the new model portfolio hub, “What it allows you to do is to create a model and tie multiple clients to that model. One, two, 15, or a hundred. And then every time you change the model, it goes through and does it for all 100 of those clients that are tied to the model, as opposed to today, where you have to go into every single one.” The model portfolio hub is expected to launch early next year.


Finsum:Carson Group announced several new additions to its platform, including a model portfolio hub that lets advisors administer multiple accounts simultaneously.

Published in Wealth Management

While many market strategists have noted the recent failures of the 60/40 model portfolio, one investment manager still sees value in the portfolio model. Quilter Cheviot's investment manager David Henry told the Financial Times that there was still value in 60/40 portfolios despite rising inflation and geopolitical uncertainty. He commented, "But if we look at the historical numbers, maybe the grim reaper should hold onto his horses." Henry looked at quarterly returns for stocks and bonds since 1986 and found that there were nine quarters when the prices of both bonds and stocks fell in tandem and it has only happened once since 1986 in consecutive quarters, the first and second quarters of this year. He stated, "Breakdowns in diversification like we have seen this year, are rare. We then looked at 12-month forward returns for a 60/40 asset allocation following quarters where stocks and bonds fell together and returns were pretty healthy following those quarters.”


Finsum: An investment manager still believes in the 60/40 portfolio model as it is pretty rare for stocks and bonds to fall in tandem.

Published in Wealth Management

Franklin Templeton has partnered with Futu Securities International, a Hong Kong-regulated operation of digital brokerage Futu, to offer three risk-based model portfolios. The two companies have worked together since 2019 when Futu rolled out its mutual fund business to help expand its client base. The new model portfolios will help the China-based company strengthen its strategic relationship with Franklin Templeton. The model portfolios will have various risk levels to fulfill the client's needs and risk appetites. Futu is leading the brokerage industry in Hong Kong with a high market penetration rate. According to the company, its average user spends 1.5 hours per day on the Futubull app. The company also claims that its Hong Kong users accounted for more than 40% of Hong Kong’s adult population.


Finsum:Franklin Templeton is renewing its partnership with Hong Kong-based Futu Securities with the launch of three risk-based model portfolios.

Published in Wealth Management

Southeast Asian wealth manager StashAway and Blackrock announced that the two firms will partner to offer a suite of multi-asset model portfolios. The portfolios will be managed by StashAway and built using Blackrock’s analytics and ETFs. StashAway launched in 2017 with its own General Investing portfolios but has since expanded its offerings to include ESG investing, thematic portfolios, and cash growth. The new partnership will provide Asia-based investors access to BlackRock’s investment capabilities through StashAway’s platform. Investors will be able to choose from three investing strategies optimized for long-term risk-adjusted returns. StashAway’s General Investing portfolio optimizes for long-term risk-adjusted returns while keeping risks constant. Its Responsible Investing portfolio follows the same strategy but is also optimized for ESG impact. The third portfolio, which will be powered by BlackRock, is a long-term investment strategy offering broader diversification for investors.


Finsum:AsianDigital wealth managerStashAway has partnered with BlackRock to provide investors access to multi-asset portfolios built using Blackrock’s analytics and ETFs.

Published in Wealth Management
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