Wealth management firms can be transformed and made more efficient by embracing a models-based investment management process, according to a new report bySEI, the US-based investment and advisory group.

A new paper, called The Ascent of Models-Based Investment Management, examines the new generation of models – the fund model and the Unified Manager Account model – and how these can help wealth advisors grow their business.

Using such models can increase a firm’s revenue stream, make a business more efficient and reduce risk by making client management more consistent.

SEI has recently argued that it has identified a new business model for the wealth management industry – the independent wealth advisor. These are distinguished by using a standardised, fee-based discretionary service approach that avoids behaviours such as pushing in-house products to clients.