Goldman Plots Course to Become a Top Five Model-Portfolio Player

Goldman Sachs Asset Management is charting a path to break into the top ranks of what’s projected to grow into a more than $10 trillion industry by the end of the decade.

The asset manager is aspiring to become one of the “top five” largest providers of model portfolios, according to Alexandra Wilson-Elizondo, co-chief investment officer of the firm’s multi-asset solutions group. GSAM ran $14.5 billion in its model portfolios, making it the ninth-largest player among asset managers, according to a Cerulli Associates 2023 report.

GSAM is one of several firms looking to make deeper inroads into a booming corner of money management in which asset managers and investment platforms package up customized strategies across asset classes. Broadridge Financial Solutions estimates the industry will more than double to some $11 trillion by the end of 2028 as financial advisers increasingly embrace the off-the-shelf allocations from stocks to bonds.

“When you have a market growing at 20% per year, you don’t have to take existing market share from someone else,” Wilson-Elizondo said in a phone interview. “You just have to outgrow them.”

Model Portfolios

Model portfolios are growing in popularity in part because they allow financial advisers to add value in other areas, Wilson-Elizondo said. Outsourcing portfolio management to a firm such as Goldman leaves more time for wealth-management matters such as tax and estate planning, she said.