- Based on a FUSE Research/WealthManagement.com survey, advisors were asked about their current and future percentage of total assets in model portfolios. Advisors are embracing model usage; over the next two years, advisors expect to increase their assets that reside in some type of model portfolio environment.
- Advisors that create their own proprietary model portfolios for clients will remain relatively steady over the next two years, with the average percentage of assets dropping slightly from 29% to 28%.
- The main driver of model portfolio growth in the next two years will come from advisors outsourcing assets to a third-party manager model or a home-office driven model from their broker/dealer. Advisors plan to shift an additional 2.5% of client assets into models over the next two years. From the manager perspective, competition will be steep and they will need to provide a model suite with flexibility, a diverse product mix, compelling performance, and a sound investment process.
Client Asset Breakdown by Year
Source: WealthManagement.com, FUSE Research Network