Category Archives: Model Portfolios

Rep as PM is Not Without Risks in 2015

In the Fidelity Advisor Investment Pulse Survey almost a third of advisors cited portfolio management as an area of focus during the first quarter of 2015. This was a marked increase from 18% in the fourth quarter of 2014.


Source: Fidelity Advisor Investment Pulse Survey

Scott Couto, President of Fidelity Financial Advisor Solutions, stated in a recent article that in the current climate increasing numbers of advisors are taking discretion over their client portfolios. A survey reported that 54% of advisors said they have used rep as portfolio manager platforms for the past five years, managing investment portfolios across client accounts.   This can come with its own set of problems, however. Couto points to situations where advisors must defend their portfolio allocation when clients ask why their portfolio didn’t match the S&P 500 at the beginning of 2015. Add to this the increasing concern over market volatility, especially in regards to international investing. 11% of advisors cited international investing as a concern; up from 5% in the previous quarter.

Opportunities abound, but advisors shouldn’t automatically assume that they can capitalize all on their own. Many top advisors are maximizing their “rep as PM” value prop by outsourcing to a customized UMA platform like Adhesion. This enables them to offer unified household reporting and a range of investment types and managers as they see fit. Many others are finding that they offer more value to their clients when they outsource the CIO function.

Adhesion offers an outstanding team of managers and strategists that we call our Unified Managed Program (UMAP). These leading strategists offer asset allocation, manager & vehicle selection (SMAs, MFs, ETFs) with on-going due diligence documentation. Click here to learn more about Adhesion’s UMAP. This “fully defensible” approach lets advisors maintain discretion while leveraging best in class investment expertise. With Adhesion advisors choose the level of outsourcing they want and designate the experts and resources to carry it out. This gives them the ability to focus more time and energy on client relationships and bringing in new business.

Click here to learn more about Adhesion’s outsourcing options.

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