Nearly $6 Trillion Is Managed By Advisors Who Would Benefit from Embracing Asset Allocation Models

For asset managers, taking on the role of an allocation provider offers an unparalleled opportunity to maintain their relevance. Instead of allowing their products to become commoditized ingredients used by advisors, managers are increasingly embracing the role as developers of recipes that feature their proprietary strategies as key ingredients.

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150,000 Advisors Could Benefit From Embracing Model Portfolios

Cerulli believes that 45% of advisors are model targets, or advisors who should be implementing models in their practices. This compares with only 12% of advisors who currently outsource investment decisions.

 

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Current Versus Optimal Asset Allocation Model Marketshare

After comparing advisors’ preferences with the realistic capabilities of their practices, Cerulli has developed an optimal segmentation with regard to asset allocation model use.

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Third-Party Platforms and Model Distribution

The third-party distribution opportunities offered by managed account technology providers and fintech marketplaces offer model providers a unique opportunity to address a broad scope of advisors. However, they have yet to prove themselves as reliable sources of assets.
 

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Cerulli For Consulting

Cerulli Associates is a global research and consulting firm that offers financial institutions guidance in strategic positioning and new business development.  We deliver strategic consulting and custom research that provide clear, actionable options.