For the past 20 years, our independent advisory firm has provided clients with a fee-based, model-driven approach to fiduciary-focused wealth management.
Our clients expect us to provide portfolio management in addition to comprehensive planning.
Do you have one family or series?
With over 10,000 different mutual funds, ETFs and index funds across a variety of asset classes, sectors, styles, countries and factors, it is prudent to research, select and utilize investments from a wide variety of companies.
In the active management space, it can be difficult to find companies where every manager in the offered lineup meets or exceeds the benchmark. …in the passive index and ETF space, different companies may offer different benchmark, sector or style variations, smart beta, low volume, equally weighted and socially responsible funds and may include unique strategies such as, and may further include combinations of human or quantum overlays.
What are the pros and cons of using model portfolios?
Strategic model portfolios offer asset allocation and diversification structures, such as building the foundation of a home based on each individual client’s specific risk tolerance and financial goals, minimizing volatility and smoothing provides a consistent ride.
Rather than spending time trying to create a customized portfolio or having the know-how to research and trade individual securities, advisers should be equipped with active and passive fund strategies for long-term investors. Utilizing a model portfolio is a more practical, efficient and scalable tactic. per client.
Beware of emptors when investing yourself or partnering with advisors who utilize robo platforms, “back office” wirehouse model offerings, or third-party model portfolio managers. Many of these programs have only been launched in the last 5-10 years and may not have a long track record or have actually been tested in a massive recession like dotcom or the Great Recession. At the same time, many of these newer programs may offer a better approach than doing it yourself and possibly even hiring an inexperienced advisor.