Invesco (IVZ) said Tuesday that it bought Jemstep, a maker of advisor-focused digital solutions. The transaction closed today, and neither party disclosed the terms of the deal.
The technology platform is not what's commonly considered to be a robo-advisor, since it does not rely on algorithms to automate a do-it-yourself investment process. Instead, it aims to support financial advisors who want to deliver advice online to clients, according to Invesco, who adds that the Jemstep platform is "easily integrated" into existing wealth management technology systems.
"We believe investors are best served by partnering with a financial advisor to reach their unique investment goals," said Invesco CEO & President Martin L. Flanagan, in a statement.
The news comes two months after Silver Lane Advisors predicted that Invesco and State Street would move into the robo space in order to keep up with rivals like Vanguard, which developed its own robo platform, and BlackRock, which acquired FutureAdvisor.
Invesco's capital management unit owns the Invesco PowerShares lineup of ETFs, which have some $100 billion in assets under management.
"The robo-advisor wave clearly can take several paths forward, with one potential being that the offering narrows in scope to a front engine for low-cost ETF funds," Silver Lane Partners said in a report published in November. "As such, State Street and Invesco have yet to make a major move in the space but would appear to be logical players given their major presence in ETFs."
Different Take
The partners emphasize the platform is different from robo-advising.
"The Invesco Jemstep combination is unique in that it will unite world-class investment management capabilities, Silicon Valley technology and expert human advice to deliver a comprehensive digital solution," said Peter Intraligi, Invesco's head of distribution for North America, in a statement. "We will deploy our industry-leading home office and field sales support in the U.S. to ensure that advisors realize the value of incorporating a digital solution into their practices."
