Fidelity Investments is launching an enhanced portfolio construction tool designed to make portfolio construction more efficient, Fidelity announced Thursday.
The Fidelity Model Portfolio will complement the existing portfolio construction capabilities that advisors currently have, Fidelity said.
Research shows that 81 percent of advisors use some form of model to construct their clients’ portfolios. According to Cerulli Associates data, the managed accounts market is estimated at $6 trillion and is expected to grow at a 14.5 percent annual rate over the next few years.
“Fidelity Model Portfolios are designed to support this growing trend by helping advisors manage their clients’ investments more efficiently and, in turn, enable them to spend more time building better relationships with their clients and growing their books of business,” Fidelity said in a statement.
Advisors use model portfolios to help provide better investment outcomes, help efficiently scale their business, and enable them to focus more on providing planning services to their clients, Fidelity said.
The initial offering of Fidelity Portfolio Model will include the Fidelity Target Allocation Model Portfolios, which offers five asset mixes that align to different risk profiles and comprise a mix of Fidelity active and passive mutual funds. Additional options will be offered later in the year.