Charles Schwab selling PortfolioCenter to Envestnet Tamarac

Charles Schwab selling PortfolioCenter to Envestnet Tamarac
More than 3,000 advisers use the portfolio management and reporting engine.
FEB 21, 2019

Charles Schwab is selling PortfolioCenter, a portfolio management and reporting engine used by 3,000 registered investment advisory firms, to Envestnet Tamarac. Envestnet announced the acquisition Thursday afternoon when reporting its fourth quarter 2019 earnings. Terms of the deal were not disclosed. The companies expect the deal to close in the first half of 2019. PortfolioCenter was key to Schwab Advisor Services' plan in 2010 for a cloud-based, multi-custodial portfolio manager that would have competed directly with rising third-party tools like Tamarac, Orion Advisor Services and Advent's Black Diamond. Schwab has since changed course. Under Andrew Salesky, who took over as Schwab Advisor Services senior vice president of digital adviser solutions in June, the firm is focusing more on partnering with third-party vendors while also rolling out PortfolioConnect, a next-generation portfolio manager with deep integrations into Schwab's platform. (More: New Schwab adviser technology chief Andrew Salesky brings veteran pressure to his team) Mr. Salesky said the sale is consistent with Schwab's platform strategy to go "broad and deep" with third-party integrations. The companies already have a history of partnership. PortfolioCenter actually serves as the accounting engine behind Tamarac's reporting software. "Over the years, we came to understand each other's strengths," said Tamarac executive managing director Andina Anderson. "We recognized that they had a really strong portfolio accounting engine. Their reporting wasn't as robust as ours." Schwab advisers make up a significant portion of Tamarac customers, so it only made sense to bring the technology in-house as Schwab goes in a different direction, Ms. Anderson said. Owning it will give Tamarac more control over future features and enhancements. It also ensures Schwab advisers using PortfolioCenter will continue to be supported. "We believe Tamarac is the best strategic fit to provide ongoing stewardship for the PortfolioCenter platform," Mr. Salesky said.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.