Dynasty Financial Rolls Out Model Portfolio Program for RIAs
Dynasty Financial Partners launched Model Select, a program designed to enable members of its network of independent registered investment advisors (RIAs) to outsource investment management functions so they can focus on clients and growth.
Model Select uses quantitative signals and qualitative insights to build portfolios utilizing passive and active strategies, according to Dynasty. The program is guided by data-driven risk management and offers various trading tempos through 11 levels of risk tolerance and also provides tax-aware and taxable fixed-income options. Dynasty said it is partnering with “leading asset managers,” giving access to broad market and niche exposures.
“We set out to build a sophisticated, scalable multi-manager solution at a reasonable cost,” Bob Shea, CIO at Dynasty, said. “As we listened to the needs of our network partners, we realized it is a highly adaptable approach to portfolio management with broader appeal than we anticipated.”
About $5 billion in new and existing client assets are already managed through Model Select. Dynasty has 58 network partner firms representing over 400 advisors with over $100 billion in platform assets.
The firm announced last month that it sold a minority stake to BlackRock and J.P. Morgan Asset Management, raising its valuation to $800 million, as it looks to fuel ongoing growth. Several of Dynasty’s existing investors and members of its board of directors also supported the round, including The Charles Schwab Corporation.
The Model Select launch comes amid a jump in advisors turning to model portfolios to save time and improve efficiency. Cerulli Associates’ most recent report, U.S. Asset Allocation Model Portfolios 2024, supports this growing trend. The report revealed that 13% of advisor assets were managed by firms that identified as “model users” at the end of 2023. That figure represents 18% of all advisors and 22% of all advisor practices.
In September, Vestmark, Inc. announced a partnership with BlackRock to enhance custom model portfolio solutions for RIAs, and in June Blackrock and OneVest announced a collaboration to deliver model portfolios.
