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Dynasty Adds Ethic ESG Offerings to TAMP

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Expanding its sustainable portfolio options, Dynasty Financial Partners, which has $16 billion in assets on its turnkey asset management platform, announced today it has partnered with Ethic to add environmental, social and governance offerings to Dynasty’s 50 independent advisory firms.

Ethic, an RIA, is a tech-driven asset manager that “powers the creation” of custom ESG solutions for advisors. Adding Ethic products to the Dynasty TAMP will give advisors the flexibility to choose from an existing group of products, or create a custom suite of investment portfolios that align with sustainability priorities.

“We believe that sustainable investing represents a tremendous opportunity for advisors to forge deeper client relationships, increase retention and capture the next generation of wealth holders,” Nick Gerace, senior vice president of investments at Dynasty, said in a statement. “The addition of Ethic to our platform reflects our ongoing commitment to providing advisors with leading-edge solutions that empower them to better serve their clients and operate scalable, successful firms.”

Jay Lipman, co-founder and president of Ethic, added: “Advisors who can have authentic and informed conversations with their clients surrounding their distinct values, and offer them tailored investment solutions, will likely be well positioned for future growth.”

Ethic’s solution draws from several data sources to aggregate, analyze and predict sustainability issues, as well as uses quantitative portfolio construction to tightly track underlying benchmarks.

As part of its expansion, Dynasty recently rolled out a new financing program for advisors going independent. The RIA services group says its Freedom Note will give qualified advisors who join its network an eight-year “forgivable loan” based on a percentage of their yearly fees and commissions. This amount will have to be repaid with a portion of the RIA’s revenue; once it is, the advisors will own all of the RIA’s equity and can continue to work via a partnership with Dynasty.

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