Boston-based independent broker/dealer Commonwealth Financial Network, with about $243 billion in brokerage and advisory assets, has expanded its in-house model portfolio platform services to allow advisors to offboard administrative functions while maintaining control over many aspects of construction.
One of three preferred portfolio programs offered on the platform, PPS Select offers a range of more than 100 model portfolios created by Commonwealth’s research and investment team. Advisors and their clients can choose the most suitable models based on risk profile, objectives and other preferences, then leave management and trading to Commonwealth.
The expanded service, PPS Select Compass, allows advisors to be more involved in portfolio construction by selecting from a menu of sleeve portfolios—including passive, active, tax-aware, alternative and sustainable strategies. They are then monitored by the research and investment team, which also provides due diligence and operational support.
An in-house investment advisory consulting group also can help advisors identify appropriate selections, while the research and investment team provides ongoing portfolio management insights and analysis.
“Every client has a ‘sweet spot’ where return, risk, diversification, liquidity, and values converge,” said Brian Price, Commonwealth's managing principal in investment management and research, in a statement. “PPS Select Compass seeks to transform advisors’ ability to deliver competitive, customized investment management to clients at scale. Ultimately, advisors have greater control and flexibility than ever to help effectively meet their clients’ goals while gaining more time to spend enhancing client relationships.”
Commonwealth advisors who have taken advantage of the PPS Select program since 2019 have seen their average production increase at a rate of 36% over a three-year period, according to the firm, compared with 29% growth among those who did not.
“PPS Select reflects our ongoing investment in and commitment to products that remove complexities for advisors,” said Managing Partner and Chief Investment Officer Brad McMillan. “The newest iteration of PPS Select provides advisors with even greater choice, control and flexibility.”
With headquarters in San Diego and the greater Boston area, the Commonwealth network comprises more than 2,100 advisors. It plans to add Schwab as a secondary custodian to Fidelity in the coming year, as it leans into the fee-only side of the business.
Privately owned since its founding in 1979, Commonwealth offers flexible affiliation models and a wide array of resources to its partner firms, including access to capital, practice management expertise, investments and research, marketing and compliance support, and a menu of outsourced services.