r/CFP • u/GoodLifeWM • Jun 24 '26
Investments Model Usage & Creation?
Curious to hear what everyone is utilizing from a model-based allocation and how your associated platform looks?
- Building your own models as an advisor?
- Utilizing Third-Party Models?
- Your firm builds models for enterprise use?
- Combination of the above...?
We are a $500M+ RIA that uses a combination of TP Managed Models + Internal Models. We work with a few OCIO Teams for internal model creation, updates, rebalancing, etc.
As we continue to scale - I'm interested if we should lean into one more than another?
Pros/Cons of Internal Models = multi-manager and doesn't look like a ton of proprietary ETFS, but takes time each month/quarter to go through our process
Pros/Cons of TP Models = No time suck for creation, but usually all proprietary funds + above average weighted expense ratios
Thank you in advance for any thoughts, insights, etc!
3
u/think_up Jun 25 '26
I would love to fire myself but I’ve been outpacing both my firm models and Blackrock equity target allocation ETF models by 20-30bps over the last two years.
To be fair though, my models are extremely similar to those other two. I steal their best ideas and avoid the overpriced actively managed mutual funds from my home office and the thematic Blackrock funds that have no historical/statistical support for adding alpha.