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The wealth management industry is intensely competitive confirming that advisors should seize opportunities for growth. Fortunately, some growth avenues are easy to tap and tailor made for advisors.
WisdomTree’s new WisdomTree Portfolio Solutions program checks those boxes. First, some fact. New York-based WisdomTree is one of the largest issuers of exchange traded funds and one of the top providers of model portfolios for use by advisors, indicating the company has brand recognition and trust in the advisory community.
With those factors in mind, it’s worth examining the firm’s Portfolio Solutions offering. It’s rooted in three pillars: custom model portfolios, model portfolios and portfolio consultations. Regarding model portfolios, bespoke or otherwise, advisors are increasing warm to outsourcing portfolio management because it frees up time for other revenue-generating pursuits and studies confirm that model portfolios don’t chase clients away. If anything, they can improve retention.
Portfolio Solutions Eases Embrace of Model Portfolios
The WisdomTree CIO (Chief Investment Officer)-Managed Portfolios featured in the firm’s Portfolio Solutions offering could be viable alternatives for advisors that are considering the outsourcing move. Good news for advisors: those ready-made model portfolios are available on multiple third-party platforms. Data indicate there are compelling reasons for advisors to consider this form of outsourcing.
“Research has shown that advisors who outsource at least 90% of their assets save an average of 8.4 hours per week on investment management,” notes Ryan Krystopowicz, director of client solutions at WisdomTree. “More than 80% of advisors reported both stronger client relationships and increased client retention as a direct result of outsourcing.”
Saving 8.4 hours a week is nothing to scoff. That’s basically a full day of work. Likewise, Portfolio Solutions’ model portfolios can be advantageous on another front: cost savings. Krystopowicz points out that half of advisors that have embraced model portfolios said operating costs have declined with 40% saying they’ve realized savings of 5% or more. Portfolio Solutions’ custom model portfolios deliver those benefits and then some.
“This service is ideal for advisors in growth mode who want a customized solution without fully relinquishing control,” observes Krystopowicz. “For example, WisdomTree helped a firm design a simplified, volatility-targeted suite of model portfolios focused on total returns and benchmark outperformance. We facilitated the transition to these model portfolios and provided ongoing support, ensuring a smooth implementation and a customized client experience.”
Take it to the Next Level with Portfolio Consultations
For advisors that simply love securities analysis and selection but want to split the difference between giving up something they love while realizing the aforementioned benefits of model portfolios, building their own model portfolios is an option.
Obviously, that’s not an easy task. Advisors opting to go this route can certainly benefit from professional guidance, which is exactly what’s provided by the portfolio consultations component of WisdomTree Portfolio Solutions.
“These consultations could be likened to a wellness check for portfolios, potentially offering actionable ideas and insights that advisors might not have considered. Plus, advisors maintain control of investment management while benefiting from WisdomTree’s extensive resources and investment expertise,” adds Krystopowicz.
Related: Siegel-WisdomTree ETF Model Portfolios: Income for the Long Run