Model portfolios are a key pillar for asset managers competing for advisor and investor attention. They offer straightforward, pre-packaged tools that help investors target and achieve specific financial goals. Designing and operating models, however, takes a particular set of skills. Goldman Sachs Asset Management recently made a big hire therein. The firm has appointed former BlackRock head of custom model solutions, Jesse Sweet, as its new models head.
Key Takeaways:
- Model portfolios are one of the key fronts in the ongoing competition between asset managers.
- Goldman Sachs recently appointed a new leader for its model portfolios, Jesse Sweet from BlackRock.
- The move could significantly accelerate advisor uptake of Goldman Sachs’ model portfolios.
Sweet, who spent more than 15 years at BlackRock, joins GSAM in a managing director role, in addition to the head of custom model solutions title.
“I’m equally energized for the opportunity in front of me — leading GSAM’s efforts to build the investment platform of the future,” Sweet shared online. “Looking forward to the challenge that lies ahead.”
GSAM's Models Get New Leadership
The move brings a new leader to guide GSAM’s model portfolio architecture. According to the firm’s site, GSAM’s process “combines building blocks from (GSAM) and third-party managers across asset classes.” The firm’s multi-asset solutions team actively manages that framework.
“Goldman Sachs has been increasingly committing to growing their ETF business through product development and the Innovator acquisition,” said VettaFi head of research, Todd Rosenbluth. “The addition of an ETF veteran to support model portfolios should be another catalyst as advisors turn to outsourced ETF solutions.”
Those building block funds include strategies like GSLC and GSIE. The Goldman Sachs ActiveBeta International Equity ETF (GSIE ) and the TR Activebeta US Large Cap Equity ETF (GSLC ) are some of the firm’s largest ETFs by AUM.
See more: Goldman Sachs’ 2025 Retirement Investing Report: 3 Takeaways
GSIE charges a 25 basis point fee to invest in international equities outside the U.S. with a multifactor view. GSLC, meanwhile, provides a multivalue take on U.S. large caps. Looking ahead, GSAM’s continued efforts to stand out in the competitive models landscape makes it a firm that forward thinking advisors should closely watch.
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