When it comes to managing client portfolios, financial advisors face several dilemmas: how to balance efficiency with customization, scalability with tax efficiency, and cost savings with high-quality investment strategy. For many, that means outsourcing portfolio management through a turnkey asset management platform. For others, it simply means putting in the extra hours to deliver their desired client experience.
At Altruist, we designed our Model Marketplace to help address both of the challenges. Whether you’re an existing Altruist user or just exploring your options, below you’ll get a breakdown of what the Model Marketplace can bring to your practice and the seven most common misconceptions about this powerful tool.
First, what is the Model Marketplace?
Altruist’s Model Marketplace is a wide-ranging collection of portfolio management strategies that enable advisors to outsource portfolio research and implementation to popular asset managers. With models starting at 0 basis points, the Model Marketplace brings expertise and automation to portfolio management without sacrificing flexibility or tax efficiency.1 The Model Marketplace is native to Altruist’s custodial offering, which includes a suite of other technologies like billing, PAS, a client mobile app, and more. Ultimately, the Model Marketplace can function similarly to a turnkey asset management platform (TAMP) but is three times cheaper on average.2
What are the myths and misconceptions about Model Marketplace?
Myth #1: There Are Only a Limited Number of Strategies
Truth: Our Model Marketplace includes over 500 models spanning numerous investing styles. Far from limited, Altruist offers a selection of strategies designed by top asset managers including Active, Active/Passive, Bond Laddered, Buffered (to buffer against market movements), Direct Indexing, ESG, Income, Passive, Quantitative, SMA, Tax Aware, and more.
Myth #2: It’s Difficult to Set Up and Apply Models within Client Portfolios
Truth: Setup is quick and simple with automatic rebalancing and capital gains budgeting.
Altruist offers an intuitive portfolio assignment process that requires only a few clicks. Automatic rebalancing ensures that portfolios stay aligned with client goals, while capital gains budgeting enables tax-smart decision-making while transitioning client portfolios into models.
Myth #3: I’m Still on the Hook for Transaction Fees
Truth: Altruist’s Model Marketplace eliminates transaction fees.1 Most advisors are used to a minefield of hidden costs and ticket charges. Though some models come with fees—models start at 0 bps, with most hovering at 12 bps—there are absolutely no transaction fees, helping advisors keep costs predictable while delivering more value to their clients. (Be sure to review our fee schedules on altruist.com/legal for information on the fees that apply.)
Myth #4: I Can’t Mix and Match With My Own Portfolios
Truth: With Unified Managed Accounts (UMAs), Altruist gives advisors the flexibility to combine models with their own strategies. This hybrid approach lets advisors maintain a personal touch while leveraging expert-designed models, ensuring both efficiency and customization for clients.
Myth #5: I Have to Pay Extra for Tax Loss Harvesting Features
Truth: Tax Loss Harvesting is included in almost all models at no additional cost. Outside of 0 bps models (where automated tax loss harvesting can be enabled for 10 bps), all models come equipped with no-cost tax management tools. You can learn more about our tax management features and the latest upgrades here.
Myth #6: The Model Marketplace Lacks Manual Rebalancing, Daily Tax Loss Harvesting Functionality, and Capital Gains Budgeting
Truth: While these features were not available for the original Model Marketplace launch, they will all be active this month. Our daily tax loss harvesting scan feature, gain/loss summaries, manual rebalancing, and gains budgeting will all be integrated directly into the Altruist platform. You can learn more about these updates here.
Myth #7: There’s No Direct Indexing Option
Truth: Altruist offers direct indexing with exceptionally low minimums.
Direct indexing has traditionally been out of reach for many clients due to high account minimums. Altruist flips the script, providing direct indexing options with some of the lowest minimums in the industry. You can learn more about Direct Indexing at Altruist here.
Want to learn more?
Register for our upcoming webinar to learn more about Altruist’s Model Marketplace or to set up a time to talk with our team.
