Advisors are coming back around to the joys of managing their clients' money themselves, even though prefabricated "model" strategies tend to do better and cost less to create.
Consulting firm Cerulli says a full 71% of advised AUM will be back on discretionary accounts by 2013 -- up significantly from 59% today.
This flies in the face of everything out there urging advisors to unbundle the portfolio management piece to focus on building client relationships.
The models are cheap to execute and have outperformed the typical actively managed discretionary portfolio, Cerulli says.
Nonetheless, advisors seem unhappy with the out-of-the-box approach, so are going back to doing things themselves.