In the wake of a rapidly changing wealth management landscape, financial advisors are making a decisive shift: they’re outsourcing investment management. According to a recent Wall Street Journal article, more than 80% of fee-based advisors now use model portfolios, with assets hitting a record $7.96 trillion—up from $6.44 trillion just a year ago.

This isn’t just a trend—it’s a fundamental industry realignment. But not all outsourcing solutions are created equal.

At BX we believe advisors should outsource with intention. That means keeping performance, control, and tax efficiency front and center—without handing off your clients to layers of fees, diluted models, or passive “set-it-and-forget-it” portfolios.

The surge in outsourced portfolios is fueled by a few undeniable pressures:

• The ETF boom has driven investment costs down.
  
  
• Passive investing has commoditized basic market exposure.
  
  
• Client expectations have evolved—demanding personalization, tax efficiency, and deeper planning.
  
  
• Advisors are stretched thin, managing complex client needs across financial planning, estate strategies, and tax coordination.
  

The result? Model portfolios have gone mainstream. But as advisors know, convenience often comes at a cost.

Many advisors default to mutual fund wrap platforms or ETF-based models offered by large institutions. While these options can streamline operations, they often introduce:

• Over-diversified portfolios that hug benchmarks and dilute return potential.
  
  
• Fee layering, including wrap fees, underlying fund expenses, and indirect compensation structures.
  
  
• In-house bias, where mutual fund companies favor their own products over higher-performing third-party options.
  
  
• Limited transparency or customization, especially when it comes to tax strategies or aligning with unique client goals.
  

As one advisor told the WSJ, “[You] just don’t always know what you’re owning—and you’re paying for the privilege.”

BX offers a smarter, more scalable way to outsource investment management—built specifically for advisors who want control without complexity.

◆ High-Conviction strategies & sleeves 

Our portfolios are intentionally designed with focus and selectivity—typically 10 to 50 holdings—across U.S. equity, international, dividend, and factor strategies. This is not broad market mimicry. It’s rules-based active indexing, built to outperform, not just track.

◆ Open Architecture

We don’t rely on in-house product. Instead, we evaluate 200+ strategists and select just the top 15–20—creating over 60+ strategy options through BX. Each model reflects true best-in-breed thinking, with no bias, bloat, or product conflict.

◆ Tax Optimization Built-In

BX models integrate seamlessly with engines to enable automated tax-loss harvesting and optimization—without increasing advisor workload. You get real tax alpha and transparency at the portfolio level.

◆ Advisor-Centric Flexibility

Whether you want to plug BX models directly into your workflow, customize a client-specific blend, or build new strategies altogether—our platform is designed for RIA control and independence. It’s performance with personalization, delivered at scale.

The future of investment management is not about doing everything yourself. It’s about choosing partners who elevate your practice without compromising your philosophy.

BX lets you:

• Save time without giving up control
  
  
• Deliver performance with same risk, and drawdown management
  
  
• Add tax efficiency without adding complexity
  
  
• Focus on what matters most: your clients
  

So yes—outsourcing is here to stay. But how you do it will define your value.

If you’re ready to modernize your portfolio construction, streamline operations, and enhance client outcomes—without falling into the wrap fee trap—BX is built for you.

BX Core was built to help advisors outsource with intention.
Our platform combines high-conviction indexing, tax optimization, and open-architecture flexibility—all designed to elevate performance and simplify your workflow.

Request a demo to see how BX Core can power your portfolios.