Alpha FMC & MDOTM Ltd Release Whitepaper On Scaling Custom Model Portfolio Management with AI

For asset & wealth managers: AI-driven model delivery that ensures consistency with investment views and scalable portfolio distribution

NEW YORK and LONDON, Feb. 18, 2026 /PRNewswire/ — Alpha FMC and MDOTM Ltd announce the release of their joint whitepaper, The Modern Model Portfolio Playbook: Part 2 – How Do Providers Manage & Deliver Models Using Innovative Technology? which explores the evolution of model portfolio delivery and the operational advantages of AI-enabled portfolio management.

Following Part 1, How Do Model Providers Structure Custom Model Offerings?, this second paper focuses on the evolution of model portfolio delivery methods and current industry trends and insights. It also explores the operational benefits of AI-driven solutions, including scalability, enhanced control, robust reporting, efficiency, risk mitigation, speed, and improved communication, while consistently supporting bespoke client requirements.

The research highlights a clear shift away from fragmented “middle-layer” processes—often built on spreadsheets and manual reconciliation—toward integrated, AI-powered workflows that reshape the full lifecycle of model portfolios, from construction and customization to delivery, monitoring, and reporting. As portfolio complexity and customization demands increase, traditional manual workflows are becoming increasingly unsustainable.

Key findings reveal that asset managers are increasingly prioritising API-driven connectivity to enable real-time portfolio distribution. AI is also becoming essential for scalable customisation, portfolio alignment at scale, systematic constraint management, and improved portfolio reporting. Successful adoption requires robust technology and data foundations, combined with a phased approach that moves from pilot programs to full enterprise rollout. Modernizing model portfolio delivery is now a strategic imperative, with AI, API-based workflows, and mature infrastructures helping firms overcome traditional challenges and unlock new opportunities in efficiency, scalability, and client service.

Despite growing industry pressure, many platform vendors remain slow to support API first infrastructure—forcing asset managers to maintain legacy software stack and processes. This disconnect between platform readiness and business demands is accelerating a broader shift: model portfolio delivery is no longer a back-office function, but a core strategic capability that drives growth, strengthens advisor relationships, and enables faster response to market change.

Commenting on the release, Daniel Page, Manager and Solution Architect at Alpha FMC said:
“Model portfolios are growing rapidly in the industry as advisors look to scale their businesses and access more customization – causing model providers to look at how they build, manage, and deliver models. This is obliging them to re-examine the scalability of their operating models, integrations, and underlying technology stacks. In response, model providers have the compelling opportunity to get ahead of the curve and position their firm for sustainable success, by adopting API-first delivery with embedded AI tooling. The potential for operational efficiency, accuracy, and speed-to-market gains in the model portfolio management space – with the help of these new technologies – is drastic when deployed prudently.”

Federico Invernizzi, Chief Operating Officer and Board Member at MDOTM Ltd, added:
“AI allows investment teams to take what they already do centrally: market views, portfolio strategies, reporting, and propagate it intelligently across thousands of portfolios, while still meeting bespoke client requirements at scale. By acting as the enabler of model delivery, AI shifts portfolio distribution from a fragmented, manual process into a scalable, controlled, and efficient workflow. This research is about helping investment professionals to move from experimentation to production-grade AI, with real impact on portfolio quality and client experience.”

Read the full whitepaper here: www.mdotm.ai/insights/alpha-fmc-mdotm-evolution-of-model-portfolios

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SOURCE MDOTM Ltd