Commonwealth Financial Expands Model Portfolio Platform

Commonwealth Financial Network, a national broker-dealer with more than 2,100 independent financial advisors that oversee approximately $243 billion in assets, has expanded its in-house investment management platform, PPS Select.

The firm says the expanded model platform empowers Commonwealth’s advisors to deliver on their client’s investment goals “while gaining scale and efficiencies in their advisory practices.”

With PPS Select, advisors can “utilize Commonwealth’s investment expertise that pursues competitive performance across more than 100 diversified model portfolio solutions, simplifying the investment management process.”

According to the firm, from 2019 to 2022, average production growth for advisors leveraging PPS Select was higher than those who opted to retain full control of investment management responsibilities. In fact, advisors who outsourced to PPS Select grew their production 36% in those three years, compared to 29% for those who didn’t use the program. The firm says advisors who delegate investment oversight to Commonwealth’s experts have ultimately been able to spend more time on their value-adds.

“Commonwealth is continually elevating its ability to help advisors be their best,” Brad McMillan, managing principal and chief investment officer, said. “PPS Select reflects our ongoing investment in and commitment to products that remove complexities for advisors. By outsourcing investment-related tasks, our advisors are able to focus more on delivering competitive, consistent results to their clients. The newest iteration of PPS Select provides advisors with even greater choice, control, and flexibility.”

The newest offering, PPS Select Compass, allows advisors to retain control over client portfolio construction while outsourcing the due diligence, ongoing monitoring, and operational functions to Commonwealth’s team. It provides advisors “access to a range of diversified sleeve portfolios, from passive and active to tax-aware, as well as alternatives and sustainably focused solutions.”

“Every client has a ‘sweet spot’ where return, risk, diversification, liquidity, and values converge,“ said Brian Price, managing principal, investment management and research. “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.”

Additionally, the firm says Commonwealth’s Investment Advisory Consulting team can help advisors identify the appropriate model solutions for each client based on their investment objectives, and the Investment Management and Research team provides ongoing portfolio management insights and analysis.

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