Dynasty Financial Partners, a provider of RIA services, has officially launched a model portfolio program for its network of independent advisors. Called Model Select, the program offers top-down portfolio construction including passive and active fund strategies from leading asset managers. Most investment options are ETFs; some select models also include mutual fund exposures.
A Dynasty Financial Partners spokesman said the firm's investment team is aiming for a balance between “indexing where it makes sense,” factor exposure depending on market conditions, and active management where alpha is possible.
Model Select has options suitable for 11 different levels of risk tolerance as well as taxable fixed income options. It includes automated portfolio trading, tax-efficient management, tax overlay capabilities and educational content for advisors.
Dynasty Financial Partners has been working on Model Select in the background for some time and already manages $5 billion in assets for advisors in its network. Chief Investment Officer Bob Shea leads the program, with support from several senior members of the firm's investment team and committee.
“We set out to build a sophisticated, scalable multi-manager solution at a reasonable cost,” Shea said in a statement. “As we listened to the needs of our network partners, we realized it's a highly adaptable approach to portfolio management with broader appeal than we expected. We continue to enhance the program, finding boutique managers and exposures to non-traditional asset classes, which we see as key to helping Model Select grow.”
In October, Dynasty received financial backing from BlackRock, JPMorgan Asset Management and Charles Schwab. increasing its value to 800 million dollars. The firm's executives indicated they wanted to make bigger investments in technology and in its existing investment banking arm. A month ago, Dynasty announced the appointment of Tim Oden, formerly of Schwab Advisor Services, as chief growth officer..
Model portfolios have exploded in popularity in recent years, with analysts from market research firm Cerulli Associates considering that virtually every wealth manager today is using models in some capacity. Today, most of these models are offered by third parties, including asset managers, TAMPs and alternative investment platforms.