The Mechanics, Opportunities, Challenges of Model Portfolios

Model portfolios offer financial advisors a blueprint for asset allocation and fund selection and, according to Morningstar, far more choices than they have in mutual funds. Unlike mutual funds, however, model portfolios are not directly investable and don’t carry the same regulatory hurdles or costs to launch. Global research and consulting firm Cerulli Associates has identified more than 150,000 advisors (representing $5.8 trillion in total client assets) who could benefit from embracing model portfolios provided by their broker-dealer, custodian, or a third party. At the MFDF’s upcoming Fund Governance and Regulatory Insights conference, expert panelists will help fund directors understand how model portfolios work and the opportunities and oversight challenges they present. The conference will be held on March 5-6, 2020 at the Four Seasons Hotel in Washington, D.C. Registration is available here.