Fuse Blog

Advisor Plans for Model Portfolio Use Over the Next Year

  • As advisors look to outsource certain aspects of their business, model portfolios and other solutions are becoming more popular. A growing number of advisors are shifting their focus toward holistic wealth management and saving time on investment management by using model portfolios.
  • A recent FUSE survey asked financial advisors about their future plans for various solutions/services in the next 12 months. The top three choices all related to model portfolio solutions, followed by portfolio construction services, and direct indexing was last with 19% of advisors planning to increase use.
  • More than 40% of advisors plan to increase use of their own constructed model portfolios. This is followed closely by third-party models and in-house (home office) models at 31% and 30%, respectively. Third-party models are an attractive, yet increasingly difficult, opportunity for asset managers that have asset allocation capabilities. At the same time, the influence of home office models at broker/dealers remains strong and gaining placement in these portfolios is also a tall order for national accounts teams.

Advisor Planned Solution Usage over Next 12 Months

4.19.23 Blog 1

Source: FUSE Research Network