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Broadridge to Offer Hyper-Personalization Tools for Advisors: Tech Roundup

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What You Need to Know

  • Sterling Trustees has joined the Envestnet Trust Services Exchange.
  • Morningstar launches new risk measurement tools for advisors.
  • InsurMark makes LifeYield’s retirement income tech a key part of the prospecting and advice delivery capabilities of the Hubbard advisor platform.

Broadridge Financial Solutions will integrate and distribute several of Tifin’s fintech wealth solutions to help advisors create hyper-personalized solutions for their clients, the companies said Wednesday.

The distribution deal follows the strategic investment in Tifin that Broadridge made in April with J.P. Morgan Asset Management and Morningstar.

Broadridge will integrate with and provide distribution for Tifin solutions including Positivly, Magnifi, Louise and Totum, each of which “addresses friction” in the wealth tech industry, the companies said in a joint announcement.

The first product to be distributed through Broadridge is Positivly, an advice personalization platform that helps advisors tailor proposals and portfolios to each client’s unique and holistic financial personality. Positivly will be available alongside Broadridge’s premium digital marketing offering including websites and personalized digital content, the firms said.

“Additional integrated offerings are planned with products that leverage Broadridge’s proprietary technologies in artificial intelligence, marketing content and holistic client centric data aggregation,” they added.

Separately, Broadridge announced the appointment of Keir Gumbs as its new chief legal officer, effective July 27, succeeding Adam Amsterdam, who will be retiring after almost 30 years leading Broadridge’s legal function. As part of a long-planned transition, Amsterdam will shift into a senior advisor role. Gumbs joins Broadridge from Uber Technologies, where he was deputy corporate secretary and deputy general counsel.

Broadridge also announced it is “further enhancing its regulatory compliance capabilities” for broker-dealers with the acquisition of the cloud-based execution compliance and surveillance service (ECS) assets from Jordan & Jordan. The price was not disclosed for the deal that Broadridge said Thursday was signed July 1.

Envestnet Adds Sterling Trustees to Its Exchange

Sterling Trustees has joined the Envestnet Trust Services Exchange, powered by Trucendent, to provide a suite of trust administration services as an embedded offering to RIAs and broker-dealers.

The Envestnet Trust Services Exchange has also been integrated with Envestnet | MoneyGuide, Envestnet | Tamarac, and other offerings across the Envestnet ecosystem, the three companies said in a joint announcement Thursday.

That integration allows advisors to “seamlessly incorporate trust account management capabilities into the platforms and workflows currently driving their practices,” the firms said.

Morningstar Launches New Risk Tools

Morningstar announced the launch of new risk measurement tools in the Morningstar Risk Ecosystem for financial advisors looking to provide “more personalized investment advice, meet evolving regulatory standards, and build better businesses.”

The Morningstar Risk Ecosystem represents a “new approach to risk measurement and analysis that aligns Morningstar methodologies for scoring portfolio risk and assessing a client’s risk profile and tolerance,” it said.

Morningstar Portfolio Risk Score is a new addition to the Morningstar Advisor Workstation for advisors in the U.S. and Canada. Morningstar Portfolio Risk Score and Risk Comfort Range are both available to third-party platforms now through Morningstar Enterprise Components, and they will “roll out across Morningstar’s flagship platforms through the remainder of 2021,” it said.

Morningstar Portfolio Risk Score measures a portfolio’s level of risk compared with Morningstar’s Target Allocation Index family and can be applied to client portfolios, model portfolios, proposed portfolios or individual managed investments, the company said.

To support its existing subscriber clients, Morningstar made the Portfolio Risk Score available across 7.1 million client portfolios in Morningstar Advisor Workstation, enabling advisors to have deeper conversations with clients and build more targeted financial plans, it said.

Risk Comfort Range is a methodology to “align client expectations about the risk exposure of their portfolios based on their risk profile and investment objectives to an appropriate range of Morningstar Portfolio Risk Scores,” it said. “This can help the advisor demonstrate compatibility between the investor’s needs and risk tolerance and the recommended investment products or portfolio.”

Each subsequent enhancement to the Morningstar Risk Ecosystem through this year will “build on Morningstar’s objective to empower investors and enable advisors to easily document and show clients how their own risk tolerance and comfort measures up against mutual funds,” exchange-traded funds or their own portfolios, it said.

The methodologies introduced in the Morningstar Risk Ecosystem result from the integration of PlanPlus Global, which Morningstar acquired last year, with Morningstar’s financial planning solutions. More than 1.5 million risk tolerance tests have been completed for over 10,000 advisors in 35 countries since 1998, Morningstar said.

InsurMark Adds LifeYield

InsurMark has made LifeYield’s retirement income technology a key part of the prospecting and advice delivery capabilities of Hubbard, InsurMark’s advisor platform, the companies said Tuesday.

The addition will “help advisors quickly match the best solutions to client retirement needs,” the firms said in a joint announcement.

LifeYield’s Social Security+ technology integration with InsurMark’s Hubbard allows advisors to “show on demand the dollars-and-cents impact of an investor’s Social Security filing strategy, and how a spouse’s circumstances and other factors influence the optimal time for each individual to claim their benefits,” they said.

Genstar to Acquire Majority Stake in Foreside

Genstar Capital signed a definitive agreement to acquire a majority stake in Foreside Financial Group from Lovell Minnick Partners, the three companies said in a joint announcement Wednesday.

Foreside provides distribution solutions and governance, risk management and compliance solutions to clients in the global asset and wealth management industries.

The transaction is expected to close, subject to customary approvals, in the current quarter.  Financial terms were not disclosed.

FDCTech Adds to Its Board

Fintech firm FDCTech appointed Charles R. Provini, Natcore Technology CEO, president and chairman, to its board of directors, increasing the size of the board to five directors, FDCTech said Thursday.

Provini is considered independent under NYSE and Nasdaq listing standards, so the firm will compensate him for his services on the board in cash and stock-based equity, it said. He has been serving in his current roles at R&D firm Natcore since May 2009.