Fidelity Institutional has expanded access to its model portfolios to a total of 16 platforms and made it easier for advisors to customize portfolios for their clients, Fidelity announced Monday.
The Fidelity Model Portfolios are designed to provide institutional money management strategies to advisors. The latest platforms added are Envestnet, Orion Portfolio Solutions and Orion Communities, the Riskalyze Partner Store, SMArtX Advisory Solutions and GeoWealth. Ten new platforms have been added in the last six months.
More than 70% of advisors currently use asset allocation models and the use is expected to grow, Fidelity said.
“Model portfolios help advisors efficiently manage clients’ assets so that they can focus on personal connections and more human elements of value, like financial planning and helping provide peace of mind,” Matt Goulet, senior vice president for portfolio solutions at Fidelity Institutional, said in a statement. “Advisors can customize model portfolios for investors’ unique needs, and that balance of efficiency and customization is resulting in a growing appetite for models among advisors.”
Fidelity introduced its model portfolios in June 2018 with the launch of the Fidelity Target Allocation Class I Series. Since inception, that series has collectively outperformed an average of 95% of peers, Fidelity said. The firm now offers 21 unique portfolios with various share class versions, including suites focused on core diversification, income generation, equity exposure and the application of the business cycle. The models include a mix of mutual funds and ETFs, as well as Fidelity and third-party products.
Fidelity Model Portfolios are now integrated into Fidelity’s Wealthscape Modeling & Rebalancing tool, making it simpler for advisors to view, customize and allocate to Fidelity Model Portfolios, Fidelity said.
Fidelity also is rolling out customized model portfolios at both the advisor and firm levels that can include vehicle replacements, preferences for certain managers and custom risk profiles.