Fidelity® Expands Its Model Portfolios Lineup to Help Advisors Meet a Wider Range of Client Needs

Fidelity Institutional has announced four new target allocation mixes in its Fidelity Target Allocation, Fidelity Target Allocation Blended and Fidelity Target Allocation Index-Focused Model Portfolio lineups, including equity and fixed income mixes of 10/90, 30/70, 50/50 and 100/0.

The expansion gives advisors the ability to address a wider range of investor risk profiles and adds to Fidelity’s already diverse offering of business cycle, income, equity and bond models, giving advisors even more ways to use models to meet their practices’ needs as the use of model portfolios continues to grow.

Since their launch three years ago, the Fidelity Target Allocation (Class I) Model Portfolios have collectively outperformed an average of 88% of peers, as of May 31, 2021. The three-year net return of the Fidelity Target Allocation 60/40 (I) Model – the most widely-used model in Fidelity’s lineup – was 12.19%, outperforming 95% of peers as of May 31, 2021.

“The consistent performance of our models shows that we’re achieving the primary goal we’ve had since launch – helping advisors manage investments more efficiently so they can spend more time on their client relationships and helping clients achieve long-term goals,” said Matt Goulet, senior vice president for portfolio solutions at Fidelity Institutional. “As the marketplace continues to evolve, we’re leveraging Fidelity’s investment experience, deep understanding of advisor needs, robust technology platforms, and relationships with other industry leaders to enhance the advisor experience and empower them to better serve clients through diversified offerings, flexibility and customization.”

Advisors can access Fidelity’s broad range of model portfolios across more than 20 platforms, making it easy for them to leverage the models wherever they do business. Direct integration with a growing number of third-party platforms, such as Envestnet, Orion, 55ip and more, delivers flexibility to advisors and enables them to maximize the value of their platforms’ functionality, as well as to work more seamlessly across platforms. Fidelity Model Portfolios are also available through Fidelity platforms including the managed account platform FMAX, and integrated into the Wealthscape℠ Modeling & Rebalancing tool, making it simpler for advisors to view, customize and allocate to the portfolios.

Customized Models Further Help Clients Deliver on Investors’ Unique Needs

In 2020, Fidelity began rolling out customized model portfolios at both the advisor and firm levels. These customizations can include vehicle replacements (e.g., ETF or mutual fund), preferences for certain managers, custom risk profiles and more.

“Customized model portfolios help us further differentiate our firm and meet a wide range of client needs more efficiently, so that our advisors have more time to focus on helping clients work towards their goals and plan for the future,” said James M. Beale, head of Managed Solutions & Capital Markets at Rockefeller Capital Management.

Fidelity Will Continue to Evolve Its Model Portfolios Offering

As part of its continued commitment to meeting client needs, Fidelity will continue to enhance its model manufacturing capabilities to streamline advisors’ ability to accommodate a range of investors. This includes exploring ESG and tax-aware capabilities, as well as continuing to make it easier for advisors to leverage Fidelity Model Portfolios as building blocks within a larger UMA (Unified Managed Account).

More than 7,000 wealth management advisors are now subscribed to Fidelity Model Portfolio updates. Subscribers receive periodic updates on model reallocation rationales, market and model performance commentaries, and investing insights from Fidelity. Advisors can also access marketing collateral on the models that they can easily share with clients, helping them explain the value of models and where they fit into a client’s overall portfolio.


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