Goldman Closes on NextCapital Purchase: Tech Roundup

What You Need to Know

The new Raymond James education offering Tech Savvy is the latest addition to the firm’s established technology education program.
Goldman Sachs has bought retirement robo-advisor NextCapital to augment its DC plan services.
Riskalyze Ultimate was created in response to demand from RIAs and broker-dealers.

Goldman Sachs completed its acquisition of retirement robo-advisor NextCapital Group, the firm said Monday.

The planned acquisition was announced by Goldman Sachs in March. NextCapital’s platform will allow Goldman Sachs Asset Management to augment its advisory services with defined contribution retirement plans through personalized managed accounts and digital advice, the New York-based bank said at the time in a statement.

The transaction “will accelerate the expansion of Goldman Sachs’ services to the growing” DC retirement market through personalized managed accounts and digital advice, the firm said on Monday.

NextCapital’s platform will become part of Goldman Sachs Asset Management’s Multi-Asset Solutions business, and NextCapital’s team of more than 150 professionals has joined Goldman Sachs.

Goldman Sachs Asset Management and NextCapital will continue to partner with financial institutions across the U.S. to deliver personalized retirement planning and managed accounts to individual investors through workplace retirement plans and individual retirement accounts, Goldman Sachs said.

Investing in the delivery of solutions for the growing DC market is a core focus for Goldman Sachs Asset Management, according to the firm. The NextCapital acquisition augments the firm’s existing asset management capabilities and workplace and wealth management solutions, providing more tools for sponsors and other clients to consider when constructing retirement programs.

Goldman Sachs had $2.5 trillion in assets under supervision globally as of June 30, it said.

Raymond James Launches ‘Tech Savvy’ Education Program

Raymond James has introduced a new education offering called Tech Savvy that it said offers advisors advanced training on integrated practice management technology.

The initiative is the latest addition to the firm’s established technology education program, according to David Lillis, vice president, technology at Raymond James.

The program’s goal is to “empower advisors with the knowledge and practical skills they need to leverage technology efficiently to run their practice, anticipate client needs and deliver exceptional service,” Lillis said in announcing Tech Savvy on Monday.

“This is a relationship business at its core, and our technology supports advisors and their teams as they establish new connections and strengthen existing client relationships,” Lillis added.

The technology education program is made up of multiple tracks and provides training on foundational technology via the adoption of new applications and enhancements, according to Raymond James.

Tech Savvy’s virtual sessions, hosted by live tech consultants and recorded for later replays, are being developed to help advisors master targeted areas of practice technology, the firm said. The courses are “highly interactive and encourage hands-on practical application throughout,” it noted.

In addition to Tech Savvy, the firm’s technology education series also includes:

Tech Essentials: Live virtual sessions providing a strong technology foundation to simplify work and boost productivity.
Tech Forward: Live virtual sessions that build on an existing technology foundation to enhance productivity and strengthen client relationships.
Tech Orientation: A self-paced, self-guided orientation program that introduces advisors to Raymond James technologies that it says are crucial for daily management.
Tech Power Up: Monthly updates on the latest Raymond James tech enhancements and practice management tools to optimize business practices.

The company now has about 8,600 financial advisors who handle client assets of $1.19 trillion, it said.

Riskalyze Launches New Combo Offering

Riskalyze has launched Riskalyze Ultimate, a new offering that the fintech said Tuesday was created out of demand from registered investment advisor firms and independent broker-dealers who it said were “clamoring for a combination of Riskalyze’s industry standard risk alignment platform and Command Center.”

Command Center is the company’s integrated compliance analytics and centralized administration tool that it says makes it easy to see which accounts have inappropriate investments, concentrated positions, or are out of alignment with their targets.

Riskalyze Ultimate “brings the power of firm-wide risk alignment to RIAs and IBDs seeking a consistent client engagement process across all their advisors, and next-generation compliance analytics to protect and grow their businesses, and keep pace with an ever-changing regulatory environment,” the company said in a news release.

Riskalyze Elite, included in Ultimate, enables each of a firm’s advisors to provide a consistent client experience that the company said “drives alignment between clients and their portfolios, increases client engagement, satisfaction and retention, and documents compliance with key rules including Regulation BI and the duty of care that advisors must demonstrate.”

Each Riskalyze Ultimate client can configure the platform with custom market assumptions and investment choices, firm branding and multi-team access control and insights, the company added.

Truist Wealth Expands Digital Offerings

Truist Wealth has expanded its digital investment offerings with the additions of Truist Invest, a robo-advisor, and Truist Invest Pro, a hybrid investing solution that it said Monday combines automated investing with access to a team of financial advisors.

“Digital investing solutions are an example of Truist’s T3 strategy which combines the client’s preferred level of personalized touch and innovative technology to create trust,” according to Joseph M. Thompson, Truist chief wealth officer.

Truist Invest helps clients identify their goals, risk tolerance and existing investments to create a tailored portfolio recommendation, according to the company. After an account is opened, clients can “benefit from a daily portfolio analysis which drives opportunities for automated rebalancing and tax loss harvesting,” it said.

Clients can also make changes to their preferences on demand to adapt to their changing financial situation and needs at any given time, Truist added.

Truist Invest Pro is a hybrid investment solution that it said combines the digital capabilities of Truist Invest with advisor-driven advice. Truist Invest Pro gives clients “unlimited access to a team of financial advisors who can help build a personalized portfolio and provide investment advice,” it added.

A Truist Invest or Truist Invest Pro account can be opened online in just a few minutes with as little as $5,000, the company said. Clients can access their account details and activities in Truist online banking and the mobile app, and easily contact support teams whenever they need them, it noted.

Annual fees are 0.50% for Truist Invest and 0.85% for Truist Invest Pro, calculated based on assets under management, with a $90 per account annual minimum, the firm added.