Fuse Blog

Portfolio Construction Services: A Sound Business Practice

  • Portfolio Construction Services (PCS) teams are relatively new groups within asset management firms, consulting with advisors on their portfolio construction. As these units have emerged, certain services have become table stakes.
  • Based on a recent FUSE survey, 90% of PCS groups provide three core services: model review, model build, and manager comparisons, with 85% of firms providing manager screenings and/or evaluations.
  • Nearly 70% of firms provide some form of customized services for specific channels, including full-service OCIO, customized model creation and tax overlay, platform-level customization, and special research projects.
  • FUSE believes organizations should focus on developing deep relationships with a select group of distributors and working with the entire organization to identify the right partners for customized PCS services. Casting a wide, shallow net will ultimately result in a firm being displaced by a competitor with greater focus.

Core Services Offered

Blog 2.13.24

Source: FUSE Research Network