State Street Global Advisors has set its sights on a momentous goal: to elevate its model portfolio business from $5 billion to over $25 billion by the end of the current decade. Model portfolios, a boon for financial advisors and clients alike, have been steadily amassing popularity. Their appeal lies in the ability to enable advisors to package funds into specialized off-the-shelf strategies, freeing up more time and resources for client engagement and financial planning.
BlackRock is currently the undisputed leader with nearly $100 billion in assets linked to its model portfolios. Impressively, the asset manager has projected that in the next five years, the total assets in model portfolios will soar past $10 trillion from the $4 trillion mark as of July 2023. Eager to secure a slice of this burgeoning market, State Street is preparing to make substantial inroads.
Peter Hill, State Street’s head of model portfolio solutions, emphasized, “We are fully committed to investing in our model portfolio business to meet the needs of our advisors and our platforms as their adoption rate of models continues to grow.” The firm is channeling investments into the segment from an ‘infrastructure perspective’, entailing the recruitment of personnel in sales and marketing, whilst also expanding outreach to advisors.
Finsum: State Street aims to increase its model portfolio segment fivefold within the next five years. Model portfolio assets are anticipated to surpass $10 trillion from the current $4 trillion over the next five years.
- advisors
- clients
- model portfolios
- Blackrock
- rates
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