How Are Your Peers Allocating Portfolios Today?
Have you wondered how other financial advisors are managing client portfolios? Since March 2015, the Portfolio Consulting Group (PCG) has provided comprehensive reviews of more than 400 portfolios. During this process, we have collected and analyzed data about how advisors construct models for their clients. Our findings suggest that many models may be more focused on the rear view mirror than on the road ahead.

In our white paper, Complacency Is Not an Investment Strategy, we offer advisors an opportunity to evaluate their own models against an informal peer benchmark and to consider whether their clients are well-positioned for today’s markets.

Here’s what we learned about advisor models today:

  • Advisors want fixed income to provide ballast, but we saw high allocations to below-investment-grade and shorter-duration bonds that could undermine that goal.
  • Portfolios show a strong bias toward U.S. equities relative to their representation in global market capitalization, despite the positive outlook for non-U.S. markets.
  • Style drift within value funds could be causing unintended overweight exposures to growth stocks.
  • Advisors have looked to real estate as an alternative, but its high correlation to equities limit its diversification potential.

Our findings underscore the importance of evaluating portfolio risk regularly and the benefit of looking beneath the hood of funds to ensure that their allocations align with their objectives. Additionally, we offer insight into potential portfolio solutions that may help advisors achieve a risk-reward balance that more closely aligns with client goals. 

For advisors seeking to evaluate their own models, the Oppenheimer Portfolio Consulting Group offers multi-faceted, unbiased reviews that highlight asset allocation, risk analysis, and manager selection. Our team’s goal is to provide insights that can help advisors optimize diversification, investment style, and overall exposures in client portfolios.

Download the white paper to get more insights into advisor models.