Collaboration combines Vanguard’s investment expertise with Vestmark’s portfolio-management, trading and tax-management infrastructure
Vestmark, Inc., a leading provider of wealth management technology and services, announced that it has been selected by Vanguard to support Vanguard Custom Model Portfolios for registered investment advisors. Through the collaboration, Vestmark will provide trading, tax-management and advisor-service capabilities designed to help wealth managers deliver more personalized portfolios efficiently and at scale.
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Vanguard Custom Model Portfolios allow advisors to modify select Vanguard multi-asset and single-asset-class models to reflect client preferences related to investment products, asset classes and management styles while retaining Vanguard’s disciplined investment approach and low costs.
Vestmark’s solution supports open-architecture portfolios that may bring together mutual funds, exchange-traded funds, separately managed accounts, direct indexing and alternative investments within a unified managed account. Vestmark provides the trading, rebalancing, tax-aware portfolio transitions, and ongoing tax management needed to implement and manage these portfolios at scale.
Advisors will also have access to a white-labeled digital experience through which they can view accounts and performance, submit service requests, create proposals, and conduct tax-transition analyses.
“Vanguard has built its reputation around disciplined investing, low costs and long-term investor outcomes,” said Karl Roessner, Chief Executive Officer at Vestmark. “By combining that investment expertise with Vestmark’s portfolio-management, trading and tax-management infrastructure, we can help RIAs deliver greater personalization without adding operational complexity. We are proud to support Vanguard as they bring this new offering to the RIA market.”
The collaboration supports Vanguard’s efforts to expand access to customizable model portfolios within the RIA channel. Vestmark’s integrations with leading custodial platforms and experience supporting large managed account programs provide a scalable implementation platform for participating firms.
“Advisors increasingly expect access to investment solutions through scalable technology and intuitive workflows,” said Eve Cout, Head of Advisor Solutions, Financial Advisor Services at Vanguard. “By pairing Vanguard Custom Model Portfolios with Vestmark’s established implementation platform, we can help RIAs customize and manage Vanguard portfolios efficiently while retaining investment rigor and control over important investment decisions.”
Vestmark supports six of the 10 largest managed account program providers. Its technology supports more than $2 trillion in assets, more than five million investor accounts and more than 72,000 financial advisors, with capabilities spanning unified managed accounts, direct indexing, tax optimization, model portfolio delivery and fixed income management.
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