Invesco's Karl Desmond Highlights 2 Model Portfolio Paths for Financial Advisors
Updated
Updated · Wealth Management · Aug 3
Invesco's Karl Desmond Highlights 2 Model Portfolio Paths for Financial Advisors
1 articles · Updated · Wealth Management · Aug 3
Summary
Karl Desmond said advisors are increasingly using both pre-built and custom model portfolios to delegate more portfolio construction while keeping control over asset allocation, manager selection and legacy holdings.
Invesco framed that shift as a capacity play: a more consistent investment process can free advisors to spend more time on client service, planning and prospecting.
Desmond said tax-aware transitions can help preserve appreciated positions and reduce disruption for existing clients when firms move into model-based investing.
Less-liquid strategies and private alternatives still complicate adoption, bringing liquidity, rebalancing, education and implementation challenges that wealth technology must help manage.
The broader pitch is operational as well as investment-focused, with streamlined model portfolios positioned to support firm growth, advisor transitions and eventual succession.
Will the aggressive push to include illiquid private assets in automated model portfolios trap investors when they suddenly need cash?
If asset allocation is fully automated, are clients paying premium advisory fees for a service they could easily get elsewhere?
As trillions flood into standardized model portfolios, could this massive automation trigger unprecedented market risks during the next major downturn?