BlackRock and Vestmark Partner to Enhance Custom Model Portfolios
The firms are combining tax management capabilities with portfolio construction methodology for RIAs.
Vestmark and BlackRock have struck a new commercial partnership that will combine Vestmark’s tax management capabilities across equities, exchange-traded funds and separately managed accounts with BlackRock’s custom model portfolio construction methodology.
The goal of the collaboration, according to the announcement, is to give financial advisors greater flexibility to offer investment solutions personalized for clients’ tax management needs at increasing scale.
Through the partnership, BlackRock will offer its range of standard and RIA custom model portfolios through Vestmark’s Manager Marketplace. The Vestmark platform is used by wealth managers to access and deploy a variety of investment strategies.
Wealth managers accessing BlackRock model portfolios will also gain access to Vestmark VAST, according to the announcement. It is described as a scalable program providing personalization and tax management resources to growth-focused advisory professionals.
The collaboration also relies on Vestmark’s unified managed account platform, which integrates the implementation of mutual funds, ETFs, equity separately managed accounts, fixed income separately managed accounts and alternatives within a single custodian account.
Karl Roessner, CEO of Vestmark, said the collaboration with BlackRock reflects both companies’ commitment to innovation and growth in the business of model portfolios, seen increasingly as a vehicle of choice for advisors.
“By leveraging Vestmark’s technology, we can help RIAs build portfolios combining mutual funds, ETFs and SMAs,” Eve Cout, head of portfolio design and solutions within BlackRock’s U.S. wealth advisory business, said in a statement. “Collaborating with Vestmark allows us to continue expanding choice to RIAs who want our portfolio design solutions.”
As noted in the announcement, Vestmark supports six of the 10 largest managed account platforms in the industry, with $1.5 trillion in assets flowing through its platform. More than 65,000 advisors supported by Vestmark technology have access to a model marketplace with more than 1,200 strategies.
Credit: Adobe Stock