This kind of investment has existed for many years, but its popularity is exploding in the era of fund industry rate wars and the prevalence of exchange traded funds. Given that so much cash has been invested, model adjustments are thought to be behind the flow of many record ETFs. BlackRock, the world’s largest asset manager, described it as “crucial” to its growth strategy. < p > < p > Armando senra, head of BlackRock iShares America, said, “we see that the models created and managed by BlackRock bring in about $1 billion a month in capital inflows,” he said, adding that this should be “only a fraction of the total flow of the model portfolio” given that many peers are also involved in the business. < / P > < p > no one knows exactly how much money is currently tracking these models, but broadridge financial solutions Inc., a financial technology firm, estimates it has grown to $3 trillion by the end of the first quarter. Most of the money is in ETFs, which constitute the basic elements of a new generation of portfolio models. < / P > < p > recently, a series of sharp capital flows are suspected to be affected by the model portfolio adjustment. This includes the Schwab fund’s record cash flow activity during the week of June. Industry insiders also suspect that BlackRock products and pioneer, a major stock ETF, are also affected by the massive capital flow. < / P > < p > by promoting their own prepackaged strategy to consultants, large fund managers can exercise more control over fund advice and asset flows. Consultants, on the other hand, can spend more time in business areas such as customer retention, because they avoid the hassle of asset allocation. < / P > < p > prefabricated portfolios can be in any form, so there are a variety of options available – from equity centric strategies to multi asset portfolios, model portfolios that optimize tax efficiency, and so on.