Distribution in a Model-driven Age

Broadridge Financial (2019)

One of the strongest forces currently reshaping the financial product distribution landscape is the increased usage of model portfolios. Understanding the forces that drive model adoption has profound implications for distribution strategies and resulting profitability. Broadridge Financial partnered with 8 Acre Perspective to uncover how and why financial advisors (FAs) use model portfolios.

A survey of 500 financial advisors revealed:

  • Most FAs employ a combination of custom and model portfolios and more than half of advised assets are in model portfolios.
  • Business scalability is the number one reason cited for using model portfolios.
  • More than 9 in 10 FAs say they are happy with their decision to use model portfolios and a similar percentage say models have allowed them to devote more time to client-facing activities.
  • The most common concern about model portfolios is that their use makes it harder for the advisor to differentiate vs. robo advisors

The research has been cited in PLANADVISER, PR Newswire, and other news outlets.

Click to Read Report