The wealth management industry is undergoing a structural shift as registered investment advisors consolidate and client expectations rise, prompting a move toward portfolio strategies once reserved for pension funds and endowments. Christina Kopec Rooney, who joined Wellington Management in 2025 from Goldman Sachs Asset Management to lead U.S. wealth, oversees more than $600 billion in wealth assets and works daily with RIAs navigating this transformation.
Rooney describes the institutionalization of wealth as a trend where RIAs are adopting centralized decision-making, chief investment officer-led investment frameworks, and broader use of model portfolios. These changes are driven by RIA consolidation, the $84 trillion intergenerational wealth transfer, and the expansion of outsourced chief investment officer approaches in wealth management, she said.
As advisors embrace this institutional mindset, the portfolio building blocks they use are expanding. Rooney notes a greater use of alternatives, from private markets to liquid strategies such as extension strategies, which have long been part of institutional portfolios. Advisors are attracted to these approaches for their ability to apply active, research-driven public market insights while maintaining liquidity and scalability, she said.
Each strategy is evaluated based on its contribution to overall risk, return, and diversification objectives, Rooney explained. Advisors see these strategies as risk-efficient solutions in a market where artificial intelligence and macro forces create winners and losers that can be exploited by investors with deep industry and company knowledge.
Personalization at scale remains a key challenge. Rooney says leading RIAs separate portfolio design from implementation, using scalable, model-based frameworks informed by institutional principles, then layering customization around tax considerations, liquidity needs, and client objectives. This approach allows consistency and discipline while delivering tailored outcomes.
Advisors are also leaning on partners who can translate complex strategies into client-ready solutions. Education and implementation support have become as important as the underlying investments, Rooney said, adding that not all providers are equal, so alignment with client objectives is critical.
Private markets are gaining prominence in wealth management, driven by structural forces such as the integration of public and private markets as companies stay private longer and private credit supplements bank lending. Rooney says advisors are responding to client demand for differentiated sources of return, income, and diversification, and are reassessing long-term allocations to incorporate private investments more thoughtfully alongside public market exposures.
Due diligence and suitability considerations are paramount, Rooney emphasized. Advisors must be clear about how private investments function within a broader portfolio, including their interaction with public holdings across market cycles. Suitability factors such as time horizon, cash flow needs, and client understanding are essential, especially as these strategies reach a broader wealth audience. Manager selection is critical, with advisors valuing managers who draw on deep research capabilities across both public and private markets.
RIAs increasingly seek true thought partners from asset managers, beyond product selection. Rooney describes a shift toward deeper, narrower manager relationships, with advisors working more closely with a smaller number of managers that offer advice, solutions, and integrated capabilities across asset classes. Wellington's recent acquisition of Hartford Funds reflects this logic, bringing together complementary capabilities to address advisor needs effectively.
