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Technology > Investment Platforms

Vestmark Adds 6 New SMA Strategies: Tech Roundup

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What You Need to Know

  • Vestmark collaborates with S&P Dow Jones Indices to launch six direct-index SMA strategies.
  • The Financial Services Institute and Broadridge Financial Solutions introduce a free-to-use Form CRS Video Guide for FSI members.
  • Global wealth management platform developer FNZ is acquiring YieldX, a provider of fixed income portfolio management technology.

Vestmark is launching six direct-index, separately managed account strategies, called Focused Index Portfolios, available via its Vestmark Manager Marketplace.

The wealth management software and services provider is collaborating with S&P Dow Jones Indices and licensing select equity benchmarks from the global index.

Of the six new SMA strategies, three are based on new, custom indices from S&P Dow Jones Indices that select constituents from the large-cap S&P 500 Index and S&P 500 Catholic Values Index.

The indexes are each constructed to measure the performance of a subset of securities from an underlying index, Vestmark said Wednesday.

Current SMA strategies based on the new indices are available now through Vestmark and include: the S&P 500 Focused 100 VAST Portfolio, S&P 500 Focused 50 VAST Portfolio and S&P 500 Catholic Values Focused 100 VAST Portfolio.

Vestmark is also launching three SMA strategies based on longstanding indices from S&P Dow Jones Indices that provide insight on specific segments of the market, including dividend-payers, ESG and international developed markets: the Dow Jones U.S. Dividend 100 VAST Portfolio, S&P 500 ESG Elite VAST Portfolio and S&P Developed Markets 100 ADR xUS VAST Portfolio.

The six Focused Index Portfolios available via Vestmark are being offered with investment minimums as low as $100,000, allowing investors broader exposure to areas of interest that were previously less accessible, even for high-net-worth investors, Vestmark said.

The strategies enable advisors to choose certain stock tilts, it said. For example, they can provide an income tilt in Vestmark’s strategy based on the Dow Jones U.S. Dividend 100 Index, which comprises large-cap stocks.

Vestmark noted that its software-as-a-service platform supports more than $1.5 trillion in assets and over 5 million accounts.

FSI, Broadridge Introduce Form CRS Guide

The Financial Services Institute, in conjunction with fintech firm Broadridge Financial Solutions, unveiled a new, free-to-use Form CRS Video Guide for FSI members.

The guide, available now, can be white labeled and is made up of three easily understandable, 90-second videos whose purpose is to help investors and clients better understand what the Securities and Exchange Commission’s Regulation Best Interest’s Form CRS contains and to “facilitate more meaningful conversations between them and their financial advisors,” FSI said Tuesday.

The announcement accompanied the kickoff of FSI OneVoice, FSI’s annual, in-person gathering for independent firm executives, in Palm Desert, California.

FNZ’s Buying YieldX

Global wealth management platform developer FNZ is acquiring YieldX, a provider of fixed income portfolio management technology.

The purchase stands to “accelerate the personalization of wealth management solutions across the U.S. market,” the companies said in a joint announcement late last week.

“Financial institutions, advisors and their clients will benefit from the combination of FNZ’s full service, end-to-end platform, and YieldX’s market-leading fixed income portfolio management technology,” the firms said.

Following the close of the transaction, Adam Green, YieldX CEO, will join FNZ as CEO of asset management for North America, while Steve Gross, YieldX president and chief innovation officer, will join FNZ as head of asset management strategy for North America.

In 2019, Green and Gross founded YieldX, which is based in Miami with an office in New York.

The acquisition will further FNZ’s presence and capabilities in the U.S., “accelerating its mission to open up wealth,” the companies said.

Financial terms of the transaction weren’t disclosed.

FNZ said it administers more than $1.5 trillion in client assets representing more than 20 million investors globally and partners with over 650 large financial institutions and 8,000 wealth management firms in 21 countries, including Barclays, Envestnet and Vanguard.

Commenting on the deal, Nikhil Sharma, managing principal and U.S. head of digital wealth at Capco, a global management and technology consultancy focused on financial services, told ThinkAdvisor: “FNZ has had an expansive footprint within wealth management with front-to-back offerings on a single platform.”

FNZ’s recent acquisitions — including Appway and now YieldX — powered by a massive funding round in February 2022, have been “in line with the consolidation M&A trends aimed towards offering depth of service in certain segments,” Sharma said.

“An API-led approach like that of YieldX makes it valuable in both branded and white-labeled integration into existing wealth platforms,” he added.

Juniper Square Nabs Ex-Envestnet Executive

Juniper Square has named Andina Anderson its chief customer officer, responsible for overseeing the company’s client onboarding, success, service and support functions.

The software company specializes in partnership enablement and provides a universal system to connect and communicate seamlessly across every stage of investment partnerships, it said Tuesday.

Most recently, Anderson was chief client success officer for Envestnet, which acquired Anderson’s previous employer, investment management software company Tamarac, in 2012. As one of its earliest employees, ”Anderson created and built the service organization for its software product, then ascended to managing director of client relations before being tapped to head the entire Tamarac business unit for Envestnet,” Juniper Square said.

As chief client success officer at Envestnet, Anderson was responsible for bringing together the Tamarac and Envestnet service teams to create a single service organization across the merged company’s suite of products and services, Juniper Square said.

Lumiant Teams With DMW to Help Advisors

Advice and client engagement platform Lumiant announced a partnership with DMW Strategic Consulting on Tuesday that  “will support advisors in creating a more memorable, meaningful and client-centric advice experience,” according to Lumiant.

According to Lumiant, its platform “empowers advisors to connect with clients and families around their lives, values and finances.”

DMW, which specializes in practice management and customer experience solutions for the financial services industry, helps advisory firms “shift their focus from service to experience,” according to Lumiant.

As part of the new pact, DMW will advise firms on how to best incorporate Lumiant’s offering and augment the client experience, Lumiant said.

DMW will also mentor members of the Lumiant community, providing education and development in practice management, client experience design and implementation.

The firms believe the value of financial planning “transcends the output of advice and portfolio management,” Lumiant said. As part of the new partnership, the companies “will look to develop a more robust and complete solution that supports advisors in delivering an impactful, valuable and enjoyable client experience—ultimately driving referrals, retention and revenue growth.”

BridgeFT Launches WealthTech API

Wealth infrastructure software company Bridge Financial Technology launched WealthTech API, a cloud-based WealthTech-as-a-Service platform that it said Tuesday provides a single, open application programming interface to “trade-ready, multi-custodial data, analytics, and applications.”

BridgeFT enables financial institutions, fintech firms and RIAs to deliver better, data-driven outcomes for clients, it said.

In conjunction with the WealthTech API launch and to “amplify the cloud-native, API-first focus of the company,” the company also formally rebranded itself BridgeFT, it said.

Elements Gets $5M in Funding

Elements, the developer of a mobile-first, client-centric financial monitoring platform, said Tuesday it secured a $5 million seed extension round to “support its continued growth trajectory.”

The round was led by Kansas-based Flyover Capital and joined by existing investors Forward VC, Grand Ventures, Kickstart Fund, SaaS Venture Capital and angel investors.

The new capital boosted Elements’ total funds raised to date to over $9 million, it said, adding that it follows a year in which the company “achieved 10x year-over-year growth in the number of advisory firms onboarded to its platform.” Elements now has about 260 firms as clients, it added.

Elements features an easy-to-use mobile app that it said allows clients to quickly input their financial data. Advisors can then leverage that information as well as 12 key financial vital signs— one for each major area of personal finance, including savings, tax and burn rate — to have meaningful conversations with their clients, it said.

Comply Adds Executives

Comply, a provider of compliance software, consulting and education resources for the financial services sector, has added to its roster of executives, naming Eric White as president, Nathan Remmes as chief growth officer and Daniel Sanders as CFO.

The firm’s clients include ComplySci, National Regulatory Services and RIA in a Box, Comply said.

White will work to scale the company and drive product and technology innovation to accelerate its long-term growth plans, as well as oversee potential future M&A activities, Comply said.

White most recently served as chief operating officer at automation firm Emburse. Over the past 20 years, White “led and supported more than 25 mergers and acquisitions, helping organizations increase value, realize growth potential and expand their customer base,” Comply said.

Remmes, meanwhile, will lead the company’s sales and revenue operations, as well as its marketing and communications efforts. He joins Comply from SalesLoft, the creator of a digital sales engagement platform, where he served as the executive vice president of its global commercial business unit.

Sanders has more than 30 years of global financial and operational management experience with publicly traded, venture capital-backed and private equity-funded technology companies, including three initial public offerings and over 20 M&A transactions. Sanders comes to Comply from TraceLink, a SaaS provider of end-to-end supply chain solutions, where he served as vice president of finance.

(Image: Shutterstock) 


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