Fidelity Investments has struck a strategic deal to offer custom model portfolios that will include private market assets through Vestmark’s platform.
The Vestmark platform will allow RIAs and broker/dealers to access open-architecture, custom model portfolios that can include semi-liquid interval funds, SMAs, ETFs and mutual funds, within a single portfolio and custodial account. Certain participating firms will be able to use the platform at no cost when they access it through Fidelity, according to Vestmark.
The news follows on the heels of Fidelity’s similar move to provide alternative investment options in its custom models to RIAs and broker/dealers through the Envestnet platform.
“We are excited to work with Fidelity to provide advisors with access to custom model portfolios that support personalized investment solutions and leverage Vestmark’s robust tax optimization capabilities to help meet their clients’ unique needs,” Vestmark CEO Karl Roessner said in a statement.
“Through this strategic relationship with Vestmark, we’re excited to expand access to open-architecture custom model portfolios for RIAs and broker/dealers, including semi-liquid alternative investment products,” Amanda Robinson, head of wealth advisory managed solutions specialist distribution at Fidelity, said in a statement. “These solutions are fully integrated with Vestmark’s platform and supported by Fidelity’s unique institutional research and investment expertise.”
The fintech world has been awash in announcements about adding private market assets to custom model portfolios, UMAs and SMAs. Two weeks ago, Vestmark announced that it partnered with alternative investment platform iCapital and asset management giant BlackRock to add private market assets to its tax-managed UMAs for RIAs on the Dynasty Financial Partners’ network. The deal appeared to build on an earlier Vestmark partnership with BlackRock to provide custom models for advisors.
Meanwhile, Vestmark’s rival Envestnet struck deals with BlackRock, Franklin Templeton, State Street Global Advisors and Fidelity to develop custom investment portfolios for advisors using its platform. In a similar vein, last year, Goldman Sachs Asset Management partnered with TAMP firm GeoWealth to build open-architecture custom models for the latter’s UMA platform.
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