I've spoken with several Advisors who were trying to determine whether they wanted to be an Asset Manager (Rep Directed) or Asset Manager (3rd Party Manager). A trend of these two styles seems to be gaining more strength.
Firms like Litman/Gregory (www.advisorintelligence.com) as many of you know consruct model portfolios for Advisors to implement and also recommend the underlying investments. Essentially, they notify you of what to purchase, and when to rebalance and sell positions. The Advisor then has to take this information and implement for their client accounts. Some Advisors have mentioned to me several reasons why they are using these model portfolio type services: A) Unsure of which investments to pick -- they like to leverage the research of another firm; B) Some don't feel the cost of 3rd Party Asset Managers (i.e. 50 bps +/-) is worth it and intrudes on their profitability.
Does anyone have an opinion on this emerging trend of these model portfolio subscription services and can you share any experiences (good or bad) of any firms you have used?