Read more: Model portfolios in focus as firms prioritize client experience
To date, individuals who develop client-specific portfolios devote 29.5% of their time to investment management, compared to those who use proprietary models, who spend 18.5% of their time to it. Both groups could cut that time commitment to under 10% if they used the model portfolio approach.
According to Cerulli associate analyst Brad Bruenell, “This saved time can be put toward client-facing activities, a particularly significant activity.”
He cites younger advisors who are concentrated on acquiring assets and developing a clientele as an example.
Model portfolios can be an economical approach for larger, more established practices to serve younger, less wealthy clients, freeing up their specialist investing personnel to concentrate on wealthier clients with more sophisticated demands.
