Fidelity Institutional has added 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, according to the July 14 announcement, gives advisors the ability to address a wider range of investor risk profiles and more ways to use models to meet their practices’ needs as the use of model portfolios continues to grow.
“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,” says Matt Goulet, Senior Vice President for Portfolio Solutions at Fidelity Institutional.
In 2020, Fidelity began rolling out customized model portfolios at both the advisor and firm levels. These customizations include vehicle replacements (e.g., ETF or mutual fund), preferences for certain managers, custom risk profiles and more.
Fidelity notes that advisors can access its model portfolios across more than 20 platforms, making it easy for them to leverage the models wherever they do business. They 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.
The firm also notes that, as part of its continued commitment to meeting client needs, it 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 within a larger Unified Managed Account.
