Portfolio Construction Agent
Constructs and rebalances portfolios to model within constraints.
Translates a target model and the client's constraints (tax lots, concentrations, restricted holdings, ESG screens) into an executable trade list that stays inside every band. Rebalances account cohorts in batched overnight runs, the full book held in band.
Authority
Recommend for approval
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Asset Management
Desk workflow
Mandate or model, then construction, then the rebalance signal, then a tax-aware trade list, then best execution and drift monitoring. Runs high-volume and rules-bound across the whole managed-account book.
Collaboration
Coordinates specialist contributions
Decision boundary
An accountable reviewer commits the decision or action.
Systems and capabilities involved
Portfolio accounting system
positions, tax lots
Optimization sandbox
constraint solver
Restricted-list + ESG screens
Suitability pre-check
Order management system
Handoffs
What this role gives and receives
Capabilities offered
The handoffs name the next owner or specialist and the work that moves between them.
Handoff to
Handoff to
Receives from
Context
What the role needs to do the work
- Current work
- The account's positions, model target and constraint set.
- Prior interactions
- The account's recent rebalances and realized gains YTD.
- Policies and reference
- Model definitions, drift bands, wash-sale and tax-lot rules.
- Working method
- Constraint-resolution playbooks for common conflicts.
Illustrative workflow
How the work moves
Starting point
Nightly drift check identifies an account cohort outside its model bands.
- 01
Group accounts by model + constraint profile; fan out to worker runs.
- 02
Solve each to-model subject to tax-lot, wash-sale and restricted-list constraints.
- 03
Net the tax impact; defer trades that would trip a wash sale.
- 04
Stage the trade lists; flag the handful with unresolved conflicts.
Result
Accounts with resolvable drift staged inside guardrails for overnight execution; constraint conflicts escalated to the accountable chief PM with options.
Checks and boundaries
What must be tested or reviewed
- 01Hard constraint guards: trades that breach a restriction or band are rejected, not 'rounded'.
- 02Wash-sale + tax-lot logic validated against an independent recompute.
- 03Trade lists above a notional threshold require release from the accountable chief PM as a second gate.
- 04Full decision trace of every optimization run retained for audit.
Human authority
An accountable reviewer commits the decision or action.
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