According to new research, model portfolio assets will more than double in the next four years if the 19% annualized growth rate continues. As demand for specialized portfolios rises, model advisory platforms have slowly put stricter due diligence procedures in place in order for firms to gain access to their platforms. Platforms typically require third-party managers to have their performance returns independently validated as a minimum qualification for participating in these platforms. The requirements vary among platforms, but typically include either a GIPS® compliance verification (putting the composite on the platform) or a certification of the model track record.
Through conversations with our largest clients, ACA has learned that many firms are shifting towards model delivery to gain access to these platforms. With this shift comes a host of questions:
- What are the trends towards showing model performance? What do other firms show?
- What is model performance? Discuss the unique terms in the model space
- What is acceptable to gain access to most platforms?
- Disclosure. Disclosure. Disclosure. What should be included from a regulatory perspective?
- What policies and procedures are needed to mitigate regulatory risk?
Tune in Wednesday, October 30, 2019 at 11 a.m. ET to hear ACA Performance Services’ Travis Morgan and Mike Sonnenburg as they answer these questions and many others related to model performance on advisory platforms.
All webcasts are recorded and sent to registrants following the broadcast.