Over the past few years, custom model portfolios have evolved from a specialized offering into an increasingly core component of an asset manager’s value proposition to their wealth advisors who build and deliver portfolio solutions for their end clients. As demand for custom models is evolving from ad-hoc requests to a more consistent pipeline of opportunities, providers are uncovering that their existing operating model may difficult to scale. This has incentivized model providers to look at how they can offer customization at scale rather than one-off opportunities, and in return, how they manage increasing complexity in their operating model. In the first part of Alpha’s series on model portfolios, we explore how model providers are structuring custom model offerings and how that impacts their operating model.
About the Authors
Kerri Heidemann
Director, Asset & Wealth Management
Kerri is a Director in Alpha’s North American Wealth Management segment. She has extensive experience in the model portfolios & managed accounts space.
Her experience includes working with leading asset managers to design and operationalize custom model portfolios and other managed account offerings. She has also worked with numerous wealth managers in building out their advisor experience and how they access products, including their underlying technology stacks and operating models.
Ben Frederickson
Consultant, Asset & Wealth Management
Ben is a Consultant within Alpha’s North American Asset & Wealth Management segment, with model portfolio experience spanning both time in industry and consulting.
While at Alpha, Ben has advised asset managers on their custom model portfolio strategies and helped a U.S-based asset manager develop a target operating model to bring a custom models offer to market. Prior to joining Alpha, Ben worked on the distribution team for a leading provider of off-the-shelf and custom model portfolios.