September, 2022

29SEP8:00 AM2:00 PMRoundtable | Portfolio Construction (New York)See the Highlights

Event Details

Industry leaders gathered for an in-depth roundtable discussion on portfolio construction Sept. 29 at Federated Hermes in New York. Catch up on the discussion with session highlights below.




Discussion Highlights:

FUSE Research Network Advisor Survey Highlights

Mike Evans | Partner & Director of Advisor and Benchmark Research | FUSE Research Network

View FUSE Presentation Slides


  • Approximately 20% of advisors solely use home office models without any outside customization/support – i.e., 80% of advisors need or benefit from portfolio construction services partnerships (PCS)
  • 1/3 of advisors met with PCS teams and 1/3 of those meetings led to product sales
  • The ratio of wholesaler meetings leading to product sales is significantly lower than 1/3
  • Less than 10% of advisors want a consultation from a wholesaler directly – i.e., more than 90% of advisors want to interact with a PCS specialist
  • Advisors are using multiple PC fund firms
  • Risk identification and tax-loss harvesting reinvestment/rebalancing are the most compelling for PC engagement
  • Advisors prefer quarterly or semi-annual PC consultations
  • 30% of consultations lead to product sales
  • Close rate is higher among female advisors (50%) compared to male advisors (30%)
  • Risk exposure analysis is cited as a top reason for engaging in PCS
  • Advisors are using multiple PC fund firms

Roundtable Discussion – Metrics

  • The percentage of portfolio construction services (PCS) meetings leading to a product sale over a given time period vs. the percentage of typical non-PCS interactions
  • Investigating the mix of PCS product sales vs. non-PCS product sales
  • Investigating the results of long-term/routine/recurring PCS clients vs. one-time and/or non-PCS clients
  • Correlating territory sales rank vs. territory PCS usage volume
  • Tracking win size and tracking top wholesalers vs. bottom usage
  • Most teams aligning by territory found the pros outweigh the cons
  • Teams looking to enable sales force for digital tools/iPad
  • Digital PC engagement tools for salespeople
  • Continuous PC advisor working relationships
  • Working with advisors before their investment committee meetings
  • Sales correlation analysis of most active PC salespeople