Tax-Aware, Personalized and Scalable: The New Model Portfolio

Host Ryan Nauman interviews Rob Battista, EVP of Advisory Solutions at Vestmark, about the evolution from traditional one-size-fits-all model portfolios to more personalized custom model investment solutions. Battista explains how models grew from manager-traded SMAs to scalable, lower-cost model delivery, fueled by greater accessibility through marketplaces and asset managers selling total portfolio solutions. He highlights key limitations of traditional models—especially inadequate customization and the tax impact of rebalancing in taxable accounts—and argues tax transition and ongoing tax overlay are now table stakes. The discussion covers how custom models can reflect advisor preferences, support multi-manager open architecture, and incorporate multiple vehicles (ETFs, mutual funds, SMAs, direct indexing, bonds, alternatives) within a UMA. Battista outlines benefits for advisors (scale, time savings, outsourcing, recurring revenue) and asset managers (stickier relationships, greater wallet share), and emphasizes implementation partners can reduce operational burden, often subsidized by asset managers. Connect with Ryan Nauman: LinkedIn X Learn more about Nauman Strategic Partners.Learn more about Vestmark here. 00:00 Welcome and Agenda 01:20 Meet Rob Battista 01:51 Vestmark Overview 03:45 How Models Evolved 06:07 What Drove Model Growth 08:06 Limits of Traditional Models 09:42 Personalization and Tax Overlay 12:24 How Custom Models Work 15:18 Multi Manager and UMA Flexibility 18:10 Advisor Benefits and Scale 20:25 Asset Manager Incentives 21:57 Operational Challenges Solved 23:36 Implementing Custom Models 26:25 Wrap Up and Resources