American Beacon and Mercer Launch Model Portfolios
Investment advisor American Beacon Advisors Inc. and consulting firm Mercer Investments, a Marsh business, launched the Mercer & American Model portfolios, a suite of professionally managed model portfolios.
The models combine thematic investing strategies, dynamic asset allocation and income-focused solutions. The five risk-based models feature a thematic equity sleeve that provides targeted exposure to high-conviction themes, including artificial intelligence, energy 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 incremental value through active management.
The income-focused models seek to provide consistent cash flow, disciplined risk management and capital preservation. They feature two complementary strategies—one centering on capital preservation and the other on high-yielding investment opportunities.
Mercer provided its institutional investment research and portfolio construction expertise to the collaboration, while American Beacon supplied its distribution platform, advisor-focused investment products and its relationship network across the wealth management industry.
Financial advisors are increasingly relying on model portfolios as an investment management tool. According to fintech firm Broadridge Financial Solutions, models accounted for about a third of all assets held by the retail intermediary channel in the first quarter of 2026, with projections that the model portfolio industry will reach $18.6 billion by 2030.
Models’ popularity has created a race among asset management firms and TAMPs to launch more such products. In June, for example, Morningstar Wealth teamed with Apollo, Franklin Templeton and J.P. Morgan Asset Management to launch models combining public and private market exposure. In April, SEI and Carlyle announced they were working on developing joint products for the wealth management market, including model portfolios.
“Advisors are balancing an increasingly demanding client environment with the need to deliver sophisticated investment solutions efficiently and consistently,” said Greg Stumm, president and CEO of , in a statement. “By collaborating with Mercer, we’re able to provide advisors with institutional-quality model portfolios.”
