November 2017: Fund Strategist Portfolios vs. Advisor Managed Portfolios – A Story of the Tails

Earlier this year, we charted the dispersion of returns in fund strategist portfolios (FSP) and advisor-managed portfolios (APM). Our scattergram captured how much more volatile APM portfolios were and showed their standard deviation was twice that of FSP portfolios. In this edition of Envestat, we expanded on our previous analysis to provide more granularity to that volatility with respect to advisors and accounts that had outperformed and underperformed in both products and sought to answer the following key questions: How are advisors and accounts distributed on a performance basis in both programs, and how does that compare to the average performance? Is there a meaningful difference in the distribution when comparing APM against FSP programs? What is the implication for the end-investor?