A Model Approach for Evolving Times

Ryan Krystopowicz :  I’m really excited to share some innovative research WisdomTree recently conducted that focuses on leveraging Model Portfolios to drive business growth. No matter what we call it, a model is simply a framework to structure asset allocation and fund selection in your practice for your clients. Leveraging third-party model portfolios is all about you and your clients.

Think about your general practitioner; this is the doctor you trust, the doctor who knows everything about you. It is their job to think about your health holistically and leverage the resources at their disposal such as bringing on specialists as needed. No one knows your clients like you do from an investment perspective.

Advisors that leverage third-party model portfolios are combining valuable research and data with their intimate knowledge of their client needs. In fact, 63% of investors equate an advisor understanding their financial needs and applying a model portfolio to a doctor conducting an assessment of their overall health. And 60% of our audience said that the use of a preset investment model portfolio would be an upgrade to their current portfolio. And by the way, that 60% goes up to 70% for millennials. We found that millennials are particularly receptive to leveraging both external resources and technology to potentially achieve better outcomes. 

What we believe to be another crucial finding from our research is that at any point in time, approximately 38% of clients are thinking about looking for a new advisor. That number jumps up to 58% if the new advisor is leveraging third-party model portfolios and properly promoting that value. Said in another way, in a head-to-head situation, an advisor who properly promotes the use of third-party model portfolios and strong collaborations has a higher likelihood to win the new client. Utilizing third-party model portfolios in your practice is way more than efficiency. It is about business growth.

So, keep that in mind as you think about your model portfolio selection and all the choices you have. WisdomTree can be a resource to support you and your pratice, including putting model portfolios to work for your clients. Visit our website or speak to your WisdomTree representative to learn more. Thank you.