HighTower Advisors announced Thursday that it has formed a strategic alliance with Guggenheim Partners giving HighTower’s RIAs—and the high net worth families they serve—access to a portfolio construction system that uses Nobel-prizewinning risk-tolerance concepts.

As part of the agreement, HighTower’s RIAs will have access to Riskometry, Guggenheim’s proprietary approach to assessing risk tolerance.  Developed by Danny Kahneman, winner of the 2002 Nobel Prize in Economics together with Guggenheim, Riskometry applies behavioral finance concepts to help high net worth investors understand their specific attitudes toward risk, according to a HighTower news release.

RIAs trained in Riskometry can use the approach with their clients, receiving tailored portfolio construction recommendations from Guggenheim. HighTower advisors will have access to Riskometry via Guggenheim Investment Advisory Solutions, an open-architecture platform that serves financial intermediaries.

“HighTower’s infrastructure leverages a multi-clearing and multi-custodial core; however, we augment those capabilities with industry-leading investment solutions focused on the unique needs of high net worth families,” said Chicago-based HighTower CEO Elliot Weissbluth (left) in a statement. “We are proud of our new alliance with Guggenheim, which has demonstrated a clear commitment to understanding the complex needs of high net worth families.” 

Guggenheim Partners is a privately held diversified financial services firm with more than $100 billion in assets under supervision. The firm, which employs more than 1,500, is headquartered in Chicago and New York.

The Guggenheim Investment Advisory team strives to identify, vet and actively monitor attractive investment opportunities both from within Guggenheim and through external solution providers. Our focus is on developing premier solutions and services suitable for advisors serving sophisticated clients,” said Phipps Moriarty, senior managing director at Guggenheim, in a statement.  “For wirehouse advisors seeking independence away from the traditional Wall Street firms, we selected HighTower as our partner to deliver industry-leading investment thinking and solutions.”

HighTower Director Gregory Schulson, an early investor in HighTower, steered the alliance with Guggenheim.