Fidelity Investments has introduced a suite of fixed-income strategies aimed at financial advisors.
The four strategies are Short Multi-Sector Bond Model Portfolio, Core Bond Model Portfolio, Core Plus Bond Model Portfolio and Dynamic Bond Model Portfolio.
They aim to diversify fixed income exposure and address various risk preferences, including duration and credit risk, according to a press release from Fidelity.
The new offerings are designed to supplement the firm’s Bond Income Model Portfolio, launched last year and aimed at maximizing risk-adjusted yield, according to Fidelity.
The new models are available through various turnkey platforms, including Fidelity’s Managed Account Solutions, Envestnet, Morningstar Model Marketplace, GeoWealth and the Riskalyze Partner Store, according to the press release. As a result, more than 100 advisory firms can already access Fidelity’s new models, the company says.
The introduction of four new fixed-income models are meant to expand Fidelity’s offerings of portfolio construction services for advisors in the fixed-income space, according to the press release.
They’re also aimed at meeting demand among financial advisors for model portfolios in general. Cerulli Associates found that 95% of advisors always or sometimes use asset allocation models for specific strategies or objectives, according to Fidelity.
Other asset managers have been rolling out model portfolios as well in recent months. In December, BlackRock announced plans to introduce model portfolios with automated tax management through a new partnership with fintech firm 55ip.