Literature Type: Commentaries

One of the fastest growing product lines in the wealth management industry today is the Fund Strategist Portfolio.

A Fund Strategist Portfolio (FSP) is an asset allocated portfolio consisting primarily of mutual funds and ETFs. These can be used as a core portfolio or as a complement or satellite solution. FSPs typically are segmented according to risk, with asset allocation strategies that extend from capital preservation to aggressive growth.

This past December felt like the Grinch was staging a coup to steal our holiday cheer, obliterate year-to-date returns, and create angst among investors. Then lo and behold Santa finally arrived in January. Better late than never. The markets rebounded, and investors breathed a sigh of relief. We experienced the most hair-raising part of a roller-coaster ride in those two months. This was a major wake-up call that volatility is back, and we better be prepared for more exciting rides in the future.

We thought it might be interesting to take a look at the shifts advisors made in managed account investment programs in 2018. We wanted to see where assets moved and which programs were favored.

We pulled and analyzed data on more than 38,000 investment switches advisors made during 2018 and came away with some compelling takeaways.