Financial Advisors Receptive to Outsourced Models, Lean Into Diversification

LIVONIA, Mich., Sept. 09, 2026 (GLOBE NEWSWIRE) -- As economic uncertainty and market volatility reshape the investment landscape and shake investor confidence, financial advisors are evolving their roles to meet the moment. New research from Escalent, an AI-enabled market research and advisory partner with unmatched financial services expertise, revealed advisors are increasingly receptive to outsourced investment solutions and portfolio strategies.

These findings are illustrated in Escalent’s 2026 Advisor Brandscape® report from Cogent Syndicated. Tracking the attitudes and behaviors of financial advisors, the annual report provides a holistic view of the advisor landscape, including practice models, product use, brand perceptions and user experience.

Advisors are shifting toward a less technical approach, dedicating most of their time to building and maintaining client relationships (59%) as opposed to portfolio construction (34%), with younger advisors spending even less time on portfolio construction. While self-built models continue to be the most common method for portfolio construction, frequent use declined in 2026 and a growing number of advisors report they no longer create models themselves. Younger advisors are driving much of this decline, gravitating toward time-saving, technology-enabled options rather than building models themselves.

More than half (54%) of advisors surveyed reported using model portfolios offered by asset managers, and just over one-third (35%) indicated using other third-party models. Advisors younger than 45 reported increased reliance on asset manager model portfolios, with those using them always or often increasing from 20% in 2024 to 29% in 2026. Additionally, generative AI use surged to 68% of advisors in 2026 (up from 49% in 2025), with top applications including productivity enhancement, client meeting support, investment research and summarizing market insights.

“Technology and outsourced portfolio management aren't replacing advisors—they're changing how advisors spend their time and deliver value for their clients,” said Meredith Lloyd Rice, lead report author and a vice president in Escalent’s Cogent Syndicated division. “With these tools at their disposal, advisors are able to devote more time to providing personalized guidance, building trust and helping clients navigate an increasingly complex financial landscape.”

Alongside changes in how advisors develop portfolios, there is also a distinct evolution in the types of products they use and allocate assets to.

• Advisor adoption of separately managed accounts (SMAs) expanded to 58% (from 51% in 2024), primarily driven by younger advisors.
• Average ETF allocations contracted to 27.5% in 2026 (from 32.6% in 2025), but are expected to rebound and continue to capture the largest share of new dollars.
• Mutual fund allocations reached 19.3% in 2026 (down from 23.0% in 2024), and use is expected to continue on a downward trajectory.
• Advisors increased their exposure to active non-US equities (36%, up from 28% in 2025) and emerging markets equity (32%, up from 20% in 2025).
• Alternative investment use continues to accelerate and move into the mainstream, with average allocations among current users standing at 7.7% today and expected to reach 10.7% by 2028.
  
  

“As financial advisors' businesses evolve, so do their expectations of asset managers,” said Linda York, a senior vice president in Escalent’s Cogent Syndicated division. “Advisors want partners that can help them cut through complexity with timely insights, practical guidance and investment solutions that support their clients’ changing needs. Firms that understand how advisors are adapting, and can meet them where they are, will be best positioned to win advisor mindshare and build strong, long-term relationships in a rapidly evolving market.”

About Advisor Brandscape™

Cogent Syndicated conducted an online survey with 1,509 registered financial advisors from January to March of 2026. In order to qualify, respondents were required to have an active book of business of at least $5 million and offer investment advice or planning services to individual investors on a fee or transactional basis. Cogent sets quota targets and weights the data to be representative of the overall advisor universe using the Discovery Data Financial Services Industry database as a sample source. Escalent will supply the exact wording of any survey question upon request.

About Escalent

Escalent is an AI-enabled market research and advisory partner with unmatched industry expertise. For 50 years, we have been catalysts of progress—turning a deep understanding of our clients’ worlds into smarter strategies and transforming human and market insight into decisive action that helps brands outthink disruption and accelerate growth. Following the acquisition of C Space and Hall & Partners in 2023, our 1,600-strong global team now offers a true one-stop shop for industry intelligence, customer insight and brand strategy. Headquartered in Livonia, Michigan, Escalent operates across the US and in Australia, Canada, China, India, Ireland, the Philippines, Singapore, South Africa, the UAE and the UK. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.

CONTACT
Alexia Garcia
616.893.2696
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/68f231db-9184-4549-b0d4-33a147ef801c

Advisor Who Always or Often Rely on Self-Built Models

Findings illustrated in Escalent’s 2026 Advisor Brandscape® report from Cogent Syndicated.

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