Vanguard custom models put a dial in advisers' hands

Vanguard is adding a customization dial to its model portfolio line. The new Vanguard Custom Model Portfolios allow advisers to modify select existing Vanguard models to account for client preferences in products, asset classes, and management styles, according to 401(k) Specialist.

Vanguard is implementing the offering through platform workflows. Vestmark's wealthtech platform, SS&C Black Diamond's asset management platform, and Orion's Tailored Allocation Portfolios are the delivery points, and white-label or co-branded marketing materials come with the package. Vanguard says the capabilities are designed to deliver more personalized portfolios efficiently, make strategic portfolio changes less disruptive, and support stronger end-client engagement. Only select existing models are open to modification.

"Helping advisors scale personalization while managing their practices efficiently remains a key focus for Vanguard," said Amma Boateng, managing director of Financial Advisor Services. Eve Cout, head of Advisor Solutions, made the trade-off explicit: "Advisors shouldn't have to choose between scale and control."

The models themselves stay Vanguard's, and client-facing delivery runs through platforms advisers already use. That likely lowers the cost of a trial, and it gives Vanguard a seat in three established workflows. Whether the dials get used is the real test; if customization sticks, the models become a differentiator, and if advisers leave the models untouched, the offering still widens Vanguard's shelf presence. The interesting part for competitors is less the product than the placement.