Registered investment advisors will be offered enhanced custom model portfolios thanks to a new partnership between wealth management software firm Vestmark and the world’s largest asset manager.
BlackRock and Vestmark’s solution will draw on the tax management capabilities of Vestmark VAST across equities, ETFs, and SMAs, combined with BlackRock’s expertise in constructing model portfolios.
It will empower RIAs to scale up their offering of investment solutions optimized for tax, with the BlackRock range of standard and RIA custom model portfolios being available through Vestmark’s Manager Marketplace.
Custom asset allocation model portfolios are emerging as a priority for asset manager model providers, according to recent research from Cerulli Associates which shows that almost 60% of advisors who took part cite custom models as one of their top three initiatives.
“Collaborating with Vestmark allows us to continue expanding choice to RIAs who want our portfolio design solutions,” said Eve Cout, Head of Portfolio Design & Solutions within BlackRock’s U.S. Wealth Advisory business. “This effort aligns with BlackRock’s commitment to providing advisors with valuable tools and resources. By leveraging Vestmark’s technology, we can help RIAs build portfolios combining mutual funds, ETFs and SMAs.”
Vestmark’s offering includes its Unified Managed Account platform that gives advisors access to implement mutual funds, ETFs, equity separately managed accounts, fixed-income SMAs, and alternatives within a single custodian account.
“Partnering with BlackRock underscores the trust and confidence that many of the industry’s leading firms have in Vestmark’s capabilities,” said Karl Roessner, CEO of Vestmark. “This collaboration strengthens our position as a prominent solution that combines advanced portfolio management with tax management capabilities. We are excited to offer our unique UMA proposition to advisors, providing an innovative, sophisticated solution to help meet their clients’ diverse needs.”
Vestmark has announced several partnerships this year including streamlining advisors’ operations and enhance their tools by joining up with Pensionmark Financial Group and greater portfolio personalization and tax management for RIAs in a collaboration with Invesco.
Goldman Sachs Asset Management is another major firm that is charting a path to break into the top ranks of providers of model portfolios which is projected to grow into a more than $11 trillion industry by the end of the decade.
Mercer, Focus Partners Wealth, Mariner, Creative Planning and Captrust top the leaderboard tracking AI search results for RIA firms.
"We believe this model will help younger investors – and any investors who value a hybrid advice experience,” said Ryan Robson, principal at Edward Jones.
Conte Wealth Advisors reportedly has $1.4 billion in client assets and 20 advisors.
The Cleveland-based RIA's latest tie-up extends the firm's national footprint into the Golden State, where opinions continue to be split over a contentious billionaire wealth tax proposal.
Meanwhile, Cetera has welcomed a family-run practice from Commonwealth, and a Merrill advisor joins an existing UBS team in Connecticut.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
