A recent whitepaper, published by Vestmark, raises the notion that as advisors attempt to meet their primary value proposition, they often face a false choice between constructing and managing bespoke portfolios – in a Rep as PM program – and focusing on financial planning and behavioral coaching – by using third-party models to outsource portfolio construction and management. While each option can enable financial advisors to add value for their clients, there is no one size that fits all and often the best of both worlds would help optimize both client solutions and an advisor’s practice management.
At Vestmark, we believe that advisors should not be forced to qualify their primary value proposition as using either Rep as PM or models; both approaches have merit and can offer quantifiable alpha. We adhere to the concept that investment vehicles can be used as interchangeable portfolio building blocks.
Vestmark’s vision to help enable a process of providing better outcomes – from home office to advisors to clients themselves – is supported by a technology platform that closely aligns with a solution proposed by Cerulli Associates: a Unified Advisory Platform (UAP).
Cerulli explains that a UAP “permit[s] advisors to construct portfolios on a singular platform, without the constraints of separate platforms for mutual funds, exchange-traded funds (ETFs), separate accounts, and advisor-discretionary programs.”1
The VestmarkONE® platform is arguably the only solution available today that can help firms realize this proposition for an advisory program with a simplified technology solution that enables mass customization at scale, in a timeframe that makes sense for your business.
The VestmarkONE® platform enables firms to offer the best of both worlds to advisors – whether firms choose to consolidate programs or just consolidate technology. Using the right technology partner eliminates the perceived false choice for advisors managing client expectations and business practices, while balancing the home office objectives of focusing on risk management and advisor/client experience.
For more information on this topic, please read The False Choice in Portfolio Construction, Building Blocks and the Advisory Solution of the Future, by Vince Pellegrini.
1 Cerulli Associates. “U.S. Managed Accounts: 1Q 2019 Edition, Issue #71, Consolidated Platforms Issue.” 2019. Page 1
By Amanda Beitler, Associate Marketing Analyst