Firms Turn to Portfolio Construction Teams in ‘Value-Add Arms Race’

Portfolio construction teams have become an increasingly larger part of both the distribution and investment functions at asset managers, as fund firms look to provide advisors with more management services. A recent survey from FUSE Research on portfolio construction teams found that all 13 firms surveyed have these teams, and 90% of them typically provide three core services: model review, model building and asset manager comparisons. “These teams and the services they have are table stakes for managers — a lot of firms have them,” said Cindy Zarker, director of relationship development at FUSE.

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Article published on February 21, 2024