How To Ease Burden of Customizing Model Portfolios

Model portfolios offer advisors a variety of advantages, not the least of which are the points of increased time for business-building and client-facing activities and data confirming that model portfolios don’t chase away business. In fact, various surveys indicate clients will stick with advisors deploying model portfolios and prospects are apt to give advisors their business when model portfolios are on the table.

Many advisors are already deploying model portfolios, whether it be of the mutual fund or exchange traded fund variety, in their practices. Model portfolios are a boon for advisors looking to streamline operations and spend more time building practices while focusing on other offerings, such as estate and tax planning and more.

Where advisors run into issues with model portfolios is adding high levels of customization for each client. Indeed, one-size-fits-all isn’t the intent of model portfolios, but binging on bespoke eliminates the time efficiencies offered by these tools. Not only that, but it creates rebalancing and tax burdens. Fortunately, there are avenues for avoiding those thorny issues.

WisdomTree/Adhesion Partnership Could Benefit Advisors

For advisors using model portfolios, WisdomTree’s new partnership with Adhesion is potentially noteworthy.

“Our collaboration offers advisors access to WisdomTree’s experienced Model Portfolio Investment Team to co-create a custom investment experience that is supported by the robust trading, rebalancing and tax-optimization services offered through Adhesion,” notes Thomas Skrobe, head of product and client solutions at WisdomTree. “This partnership not only streamlines the investment management process but also significantly enhances the advisor-client relationship. Let’s explore the benefits and how our advisory clients have leveraged these services to their advantage.”

Via the Adhesion platform, advisors using WisdomTree model portfolios can increase levels of customization for clients without creating more work. Adhesion allows advisors to go bespoke while still harnessing automated rebalancing and trading.

In this case, automation can be accretive in terms of client service while increasing operational efficiencies and decreasing the possibility of negative tax issues.

“Adhesion’s tax management services are a game-changer for advisors seeking to optimize their clients’ after-tax returns. Through strategies such as tax-loss harvesting and careful management of capital gains, advisors can provide significant tax savings, thereby enhancing the overall value proposition to their clients,” adds Skrobe.

Improving Upon Model Portfolios Perks

On a standalone basis, model portfolios bring more positives than negatives to the table for bother advisors and clients. The WisdomTree/Adhesion collaboration improves upon that notion.

Consider the real-world applications of efficiently diversifying client portfolios, scaling practices and potentially increasingly after-tax outcomes. There’s a lot to like with each one of those and they’re even better when realized at the same time.

“By combining WisdomTree’s asset allocation expertise with Adhesion’s cutting-edge trading, rebalancing and tax management platform, advisors can be equipped to deliver impactful investment management services to their clients,” concludes Skrobe. “This partnership not only enhances operational efficiency and scalability but also enables advisors to provide their clients with personalized, tax-optimized investment strategies. In today’s competitive landscape, leveraging such innovative solutions is crucial for advisors aiming to differentiate their services and achieve long-term success.”

Related: Help High-Net-Worth Clients Capitalize on Important Tax Break