American Beacon and Mercer Launch Model Portfolios
Investment advisor American Beacon Advisors Inc. and consulting firm Mercer Investments, Marsh business, launched Mercer & American Model Portfolios, a collection of professionally managed model portfolios.
The models combine thematic investment strategies, dynamic asset allocation and income-oriented solutions. The five risk-based models are a Thematic equity sleeve Providing targeted exposure to high-profile crime themes, incl Artificial intelligence, power transition and demographic changes. They also rely on Mercer’s asset allocation framework, which combines top-down economic views with bottom-up return drivers to deliver added value through active management.
Income-oriented models seek to provide consistent cash flow, skilled risk management and capital protection. They offer two complementary strategies: one focused on preserving capital and the other on high-yielding investment opportunities.
Mercer provided its expertise in institutional investment research and portfolio construction to the partnership, while American Beacon provided its distribution platform, advisor-focused investment products and network of contacts in the wealth management industry.
Financial advisors are increasingly using model portfolios as an investment management tool. According to fintech company Broadridge Financial Solutions, Models account for one-third of the assets held by the retail middle channel In the year In the first quarter of 2026, the model portfolio industry estimates that it will reach $18.6 billion by 2030.
The popularity of the models has created a race between asset management firms and TAMPs to launch a wide variety of products. For example, in June Morningstar Wealth has partnered With Apollo, Franklin Templeton and JP Morgan Asset Management to launch models that combine public and private market exposure. In April SEI and Carlyle have announced that they are developing joint products for the wealth management market, including model portfolios.
“Advisors are increasingly balancing the client environment with the need to provide sophisticated investment solutions efficiently and consistently,” Greg Stumm, president and CEO, said in a statement. “By partnering with Mercer, we can provide advisors with institutional-quality model portfolios.”
