Goldman Sachs Hires Jesse Sweet to Lead Model Portfolios

Goldman Sachs Asset Management has hired Jesse Sweet, the former head of custom model solutions at BlackRock, as a managing director and head of custom model solutions to oversee its model portfolios. Sweet announced the appointment online and wrote, “I’m equally energized for the opportunity in front of me — leading GSAM’s efforts to build the investment platform of the future. Looking forward to the challenge that lies ahead.”

In his new role, Sweet will manage GSAM’s model portfolio architecture and lead efforts to expand outsourced portfolio offerings for financial advisors. Model portfolios package asset allocations and investment strategies in pre-built formats that advisors can implement for client accounts.

GSAM says its model process combines internal and external building blocks across asset classes, with a multi-asset solutions team actively managing the framework. Building block funds include Goldman Sachs ETFs such as the ActiveBeta International Equity ETF (GSIE) and the TR ActiveBeta US Large Cap Equity ETF (GSLC).

GSIE charges 25 basis points and uses a multifactor approach to international equities outside the U.S. GSLC applies a multivalue approach to U.S. large-cap stocks. The firm has expanded its ETF business through new product development and the acquisition of Innovator.

Industry observers highlighted Sweet’s ETF experience as relevant to the role. Todd Rosenbluth, head of research at VettaFi, observed the hire “should be another catalyst as advisors turn to outsourced ETF solutions.”

The appointment arrives amid wider industry focus on model portfolios and turnkey investment solutions for intermediaries. The role at GSAM carries both the managing director title and the head of custom model solutions designation.