Fidelity offering model portfolios

Fidelity offering model portfolios
Custodian believes these will help advisers scale their business and offer more financial planning.
JUL 12, 2018
Fidelity Investments is jumping on the model portfolio bandwagon. The Boston-based custodian with $7 trillion in assets under advisement launched on Thursday the Fidelity Target Allocation Model Portfolios, which offers five different asset mixes that align to different risk profiles. The portfolios have a mix of Fidelity active and passive mutual funds. The firm said model portfolios can provide advisers with a lower cost way to offer clients institutional-quality investment management. (More: DOL fiduciary rule helped birth new model portfolio breeds) In the face of fee compression, advisers are turning client assets over to model portfolios to scale their practice and offer more financial planning, said Matt Goulet, senior vice president of Fidelity Institutional Asset Management. "The model portfolio space is a natural extension of our existing portfolio construction capabilities," Mr. Goulet said in a statement. According to Fidelity's research, 81% of advisers use some form of model to construct client portfolios. (More: TD Ameritrade finds momentum in its new model portfolio marketplace) The firm also cited data from Cerulli Associates that show the managed accounts market is $6 trillion and expected to grow at a 14.5% annual rate. Model portfolios are intended to help advisers tap into those assets.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management