Find out how model portfolios can benefit you and your clients
February 3, 2023
February 3, 2023
Get a long-term perspective, broad global diversification, and a focus on strategic asset allocation at a very low cost.
You'll get a strategic asset allocation strategy that seeks to make model portfolios durable through all market cycles and conditions. With Vanguard model portfolios, your clients will enjoy the broadest global market-capitalization coverage in the model space: nearly 90% of the global, investable universe, at nearly 30,000 individual securities.
Research has shown that, on average, portfolios following a strategic approach to asset allocation have provided better client outcomes than portfolios following a tactical asset allocation approach.1 Read the latest research paper from the Vanguard Investment Advisory Research Center for details on the link between a strategic approach and increased client retention, client satisfaction, and referrals.
Take advantage of broad, global exposure, over time, with oversight that includes constantly making adjustments. That includes monitoring changes in the breakdown of sectors and economies and making changes as needed.
"Participate in the winning markets and sectors when they do well and…mitigate some of the risk to being overexposed to countries or sectors or individual securities when there are underperformances. The beauty of diversification."—Michael DiJoseph, Vanguard Investment Advisory Research Center Senior Strategist and CFA charter holder.
Take advantage of a time-tested approach: Research has found that 90% of an investor’s return variability is explained by asset allocation.1 This is one reason we believe models can be a powerful tool for your clients. And by not making short-term bets on the markets, we're seeking a high level of predictability and a tighter range of investor outcomes.
Stay disciplined: You know that your value as an advisor includes behavioral coaching and helping to keep your clients "on plan." Vanguard mirrors that by managing these portfolios with a research-driven plan and not reacting emotionally to turbulent markets.
Help clients stick to their long-term plans: Conventional wisdom may lead some of your clients to demand that you make tactical changes to their holdings during volatile times. But with your expert advice, combined with our strategic approach, you can help keep them on track for the long term.
Help clients keep more of their returns: Our portfolios are low cost, so your clients benefit from increased value.
"We build Vanguard models on a foundation of strategic asset allocation to help provide a better client experience."—Colleen Jaconetti, Vanguard Investment Advisory Research Center Senior Manager, CPA and CFP professional.
Get more time: Models help free up your precious time to allow for more and deeper conversations with clients about all aspects of their wealth management goals.
Leverage our experts: Our portfolios are overseen with rigor and discipline by a diverse team, Vanguard’s Strategic Asset Allocation Committee, who constantly evaluate but make changes only when necessary.
Deliver more value: By removing the due diligence and defense of complex portfolios from your plate, models can help you plow more advisor expertise into the personal relationships, where we believe the return on the investment of your time is highest for clients.
Grow your business: As you focus more time on coaching, estate and tax planning, insurance, and other financial planning, you are working to fortify the high-trust relationship essential to attaining and attracting new clients.
"Strategic model portfolios are an incredible financial innovation. So use that innovation to free up time to focus on these higher, value-add tasks."—Mike DiJoseph.
Our total-return models and objective-based models are foundational investments to match your clients' needs.
1 Source: Investment Advisory Research Center calculations based on data from Morningstar, Inc.
2 Brinson, Gary P., L. Randolph Hood, and Gilbert L. Beebower, 1986. Determinants of Portfolio Performance. Financial Analysts Journal 42(4): 39–48; reprinted 1995 in Financial Analysts Journal 51(1): 133–38 (50th Anniversary Issue).
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