More and more financial advisors are relying on third-party model investment portfolios for their clients, and custodian firms have been paying attention.
Two such firms, Pershing and Fidelity, have unveiled technology that aims to make using model portfolios easier for advisors, InvestmentNews reports.
BNY Mellon Pershing Monday announced a new digital portal for managing model portfolios, while Fidelity Clearing and Custody Solutions is updating AMP, its digital advice platform for advisors, to allow them to create models customized to clients’ risk tolerances and defined asset allocations, according to publication.
A new study by
Broadridge Financial Solutions
shows AUM for model portfolios has jumped 19% annually since 2016 to nearly $3 trillion, InvestmentNews notes.
Pershing plans to start rolling out its Manager Gateway by the end of year. The system will replace the firm’s existing Manager Workstation.
“One of the primary pain points for investment managers is the time they spend replicating models for different clients,” said Sarah Chain, director of global strategy and product management at Pershing. “Manager Gateway simplifies the client service experience so that model providers only need to enter models once before they’re automatically routed to investment professionals.”