Expands ESG Investing Options Via Strategic Investment in Leading Provider of Dynamic Custom Indexing for Tax-Sensitive SMAs
Resolute Investment Managers, Inc. (“Resolute”) announced that it has entered into an agreement with OpenInvest through which OpenInvest’s Dynamic Custom Indexing (DCI) platform will be made available across Resolute’s extensive distribution network of investment managers.
Resolute is a diversified, multi-affiliate asset management platform with more than 40 affiliated and independent relationships. OpenInvest is a registered investment adviser and public benefit corporation leveraging technology to provide customization, direct indexing and impact investing at scale.
The agreement is expected to power further uptake of OpenInvest’s DCI among financial advisors and institutions and allow them to offer separately managed accounts (SMAs) with direct indexing, ESG investment options and tax optimization.
OpenInvest’s DCI provides granular customization, direct shareholder engagement and proxy voting. Its proprietary algorithms automatically rebalance portfolios to keep them dynamically diversified as investors invest/divest in individual causes, companies or institutional values.
“OpenInvest is driving impact investing at scale, bringing honesty and transparency to financial services while making socially responsible investing accessible to everyone,” Gene Needles, chairman and CEO of Resolute, said.
“Our collaboration with Resolute signals the rapid adoption of post-fund asset management. Resolute will bring our tech-enabled SMA solution to financial advisors and platforms across the country, who are increasingly seeking custom direct indexing and modern ESG,” Josh Levin, chief strategy officer and co-founder of OpenInvest, said.
The OpenInvest agreement also includes investment from Resolute. It is Resolute’s fifth affiliate company investment since 2019, following investments in RSW Investments, SSI Investment Management, Green Harvest Asset Management and National Investment Services. Resolute was advised by Skadden, Arps, Slate, Meagher & Flom LLP. OpenInvest was advised by Morrison & Foerster.
