A Roadmap to Personalizing Model Portfolios: Scaling with Purpose

Research Paper
Yuliya Plyakha Ferenc, Ashish Lodh
October 19, 2023
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As personalized investment solutions gain traction, wealth managers are seeking scalable solutions to meet their clients' demands. We illustrate how wealth managers can strategically integrate factor, thematic and sustainable investing to personalize model portfolios. Our analysis of the historical risk-and-return profiles of sample portfolios constructed using allocations to and blends of these strategies shows they have historically outperformed global equities. Achieving effective personalization requires a delicate balance between the house view and client objectives.
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Inputs to a personalized investment solution
This exhibit lists potential elements of a wealth manager's house view and the potential outcomes a client may desire to achieve through their investment portfolio. Balancing both viewpoints in personalizing the investment solution is critical. Portfolio strategies could include allocations to domestic securities, regional markets and industry sectors and to sustainable, thematic and factor investing.
Yuliya Plyakha Ferenc
Yuliya Plyakha Ferenc
Vice President, MSCI Research
Ashish Lodh
Ashish Lodh
Executive Director, MSCI Research

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