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BofA Makes Strategic Investment in iCapital: Tech Roundup

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What You Need to Know

  • Bank of America made an unspecified strategic investment in iCapital.
  • Edelman Financial Engines launched a retirement income solution for 401(k) plan participants who are in or near retirement.
  • TIFIN made two key appointments the fintech firm said were designed to help expand its distribution and international businesses.

Bank of America made a strategic investment in iCapital, the latest milestone in a relationship that started between the companies in 2018, iCapital said Thursday.

Merrill Lynch’s parent firm invested in iCapital at the same valuation as iCapital’s last funding round in December 2021, iCapital said. But no additional terms of the new transaction were disclosed.

iCapital will use the funds to “continue to build out the technical capabilities of its global alternative investing solution that supports more than $130 billion in platform assets,” it said.

In March 2019, iCapital acquired Bank of America’s alternative investment feeder fund operations. That enabled Bank of America to streamline and automate ongoing fund operations and administration services for Merrill and Private Bank advisors and their clients, according to iCapital.

Since the initial agreement with Bank of America, iCapital has made several acquisitions and launches designed to “expand its technical capabilities, broaden the menu of investment opportunities offered on its platform, and continue to lead the industry in developing solutions to overcome barriers to efficiency and adoption,” the company said Thursday.

Income Beyond Retirement Introduced

Edelman Financial Engines launched Income Beyond Retirement (IBR), a retirement income solution the RIA said was designed for 401(k) plan participants who are in or near retirement.

“IBR combines portfolio management and technology-enabled analysis with financial advisor support to create highly personalized, flexible retirement income plans and investing strategies to match the individual needs of employees,” Edelman said.

Amid a heightened need for such solutions due to the macro environment, IBR is “already being offered by dozens of leading companies, including notable employers such as Boeing, Lenovo, Equifax, Milliken and Prime Therapeutics,” as well as many Fortune 500 firms, Edelman said.

Edelman is working with its 401(k) provider partners to make IBR available to plan sponsors, it said. The new solution went live with direct provider partners and “will be available across all partners soon,” the firm added.

IBR includes various online resources and access to a team of financial professionals who provide an assessment of after-tax spending capability, as well as income planning and scenario analysis that Edelman said helps participants develop their own unique plans to manage risks associated with market uncertainty, sequence of returns, interest rates, inflation and longevity uncertainty.

Also featured are custom portfolio strategies matching participants’ goals for reliable income, asset growth or any combination of objectives, as well as an integrated view, including optimized Social Security claiming strategies, in-retirement income sources, and withdrawals generated from all household accounts (including tax-deferred and taxable accounts).

Edelman now has more than 145 offices across the U.S. and manages over $275 billion in assets for more than 1.3 million clients, it said.

TIFIN Makes 2 Key Hires

TIFIN announced two key appointments on Thursday that the fintech firm said were designed to help expand “high-growth areas across” its distribution and international businesses.

Jason O’Shaughnessy joined TIFIN as head of international after running the international efforts at Envestnet’s Yodlee division, where he led that company’s business across multiple countries in Asia and Europe.

In a similar role at TIFIN, O’Shaughnessy will be in charge of driving TIFIN’s revenue growth in international markets for its platform, which uses artificial intelligence and personalization, the firm said.

TIFIN also added Tim Stegner as head of sales, asset manager partnerships. Before joining TIFIN, he served as a managing director leading teams within firms including BlackRock, Merrill Lynch, Northern Trust and Nuveen.

Income Lab Launches Life Hub

Income Lab, a provider of software for retirement income planning, introduced Life Hub, a next-generation interactive tool for advisors.

The new tool provides advisors’ clients with a detailed visualization of their financial lives on one page, the company said Thursday. Life Hub “seamlessly integrates dynamic retirement income plans and tax-smart distribution strategies,” it said.

More than 200 advisors have been beta testing Life Hub for the past six months and the tool went live on Wednesday, Income Lab added.

Advisors can use Income Lab’s technology to build and monitor retirement income plans that help retirees adjust for evolving economic and market conditions and make tax-smart distribution decisions, the company said.

The software monitors retirement plans monthly to see whether circumstances have changed enough to warrant modifications and then notifies advisors, who can then discuss potential changes with clients.

Life Hub is being included as part of the Income Lab retirement planning software available to advisors at rates ranging from $159 a month for a single advisor to $139 a month for large advisor teams.

CoastalOne Selects Finity360

Hybrid RIA/broker-dealer CoastalOne selected Arcus Partners’ cloud-based Finity360 wealth management digital office solutions to handle its digital document management and client onboarding workflows, Arcus said Thursday.

Using Finity360, CoastalOne advisors, clients and compliance and home office teams can now search and “synchronize hundreds of thousands of documents seamlessly on the Salesforce CRM platform and back-office applications,” Arcus said.

Business growth led to a significant increase in the number of business files and documents CoastalOne had to manage across thousands of folders, which led to synchronization and search challenges, according to Arcus.

After implementing Finity360 Docs, a Financial Industry Regulatory Authority-compliant document management solution, CoastalOne is now implementing Finity360 Forms to digitize client onboarding workflows, Arcus said.

Finity360 Forms is a natural-language forms solution that simplifies client onboarding and eliminates “not in good order” (NIGO) documents.

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