FYI: Some financial advisors are into portfolio management and prefer creating investment portfolios for their clients. Others aren’t. For advisors who’d rather outsource some or all of their investment management in order to focus on comprehensive financial planning, they can turn to model portfolios. And increasingly, they do.
To use a trendy word, model portfolios are “curated” strategies of prebuilt portfolios where the design, construction and ongoing due diligence are handled by third-party providers. They first hit the scene in the early 1990s when Brinker, Lockwood and SEI rolled out mutual fund-based models, according to Scott Smith, director of advice at Cerulli Associates. Later, third-party strategists came out with models based on exchange-traded funds. Some asset managers believe the next stage in the evolution of model portfolios will incorporate sophisticated strategies—such as managed correlation—designed to provide a smoother ride than traditional modern portfolio theory.
Regards,
Ted
https://www.fa-mag.com/news/model-portfolios-as-a-viable-option-51761.html?print
