Dynasty Financial unveils outsourced investment program

Dynasty Financial Partners is leaning harder into the "outsource-to-grow" movement across the independent advisory industry with a new turnkey offering for its partners.

On Thursday, the RIA platform juggernaut formally introduced Model Select, a program designed to help RIAs within its network outsource investment management and focus more on client relationships and strategic growth.

According to the firm, the Model Select program incorporates top-down portfolio construction, blending quantitative signals with qualitative insights to create portfolios that integrate both active and passive strategies. Advisors can choose from 11 risk tolerance levels, select various trading cadences, and access tax-aware and taxable fixed income options.

The program also includes tax overlay capabilities, which Dynasty said sets it apart from many other outsourced solutions.

“We set out to build a sophisticated scalable multi-manager solution at a reasonable cost,” Bob Shea, chief investment officer at Dynasty Financial Partners, said in a statement. “As we listened to the needs of our Network Partners, we realized it is a highly adaptable approach to portfolio management with broader appeal than we anticipated.”

Dynasty said it partnered with several leading asset managers enable the program to offer both broad market exposure and access to niche asset classes,. The firm is continuing to explore boutique managers and alternative investments to expand the program’s capabilities, Shea said.

A spokesperson for the firm declined to specifically name the asset managers involved in the new program.

Model Select offers automated transitions for client assets, tax-smart management, and features aimed at simplifying portfolio oversight.

“Automated portfolio trading, professionally managed tax overlay, and educational content give advisors a wealth of insight to drive more meaningful conversations with their clients,” said Shirl Penney, founder and CEO of Dynasty Financial Partners. “Most importantly, by outsourcing investment management to a cost-effective program like Model Select, advisors can focus on spending more time with clients, meeting prospects, and growing their businesses.”

The initiative is a continuation of Dynasty’s broader strategy to empower growth for RIAs.as an open-architecture wealth management platform.

That business model, which it's stuck with since launching 15 years ago, has clearly struck a chord for some big names. In October, a cohort of investors including Charles Schwab, BlackRock, and JPMorgan Asset Management came together for a minority capital raise to back the company's continued growth. While the announcement didn't reveal exact terms, separate media reporting said the deal valued the Dynasty platform at $800 million.