Host Ryan Nauman interviews Rob Battista, executive vice president of Advisory Solutions at Vestmark, about the evolution from traditional one-size-fits-all model portfolios to more personalized custom model investment solutions.<\/p>\n
Battista explains how models grew from manager-traded SMAs to scalable, lower-cost model delivery, fueled by greater accessibility through marketplaces and asset managers selling total portfolio solutions. He highlights key limitations of traditional models\u2014especially inadequate customization and the tax impact of rebalancing in taxable accounts\u2014and argues tax transition and ongoing tax overlay are now table stakes.<\/p>\n
The discussion covers how custom models can reflect advisor preferences, support multi-manager open architecture, and incorporate multiple vehicles (ETFs, mutual funds, SMAs, direct indexing, bonds, alternatives) within a UMA. Battista outlines benefits for advisors (scale, time savings, outsourcing, recurring revenue) and asset managers (stickier relationships, greater wallet share), and emphasizes implementation partners can reduce operational burden, often subsidized by asset managers.<\/p>\n