Vestmark on Thursday announced the launch of a tax-managed unified managed account (UMA) it developed with BlackRock, Dynasty Financial Partners and iCapital that enables RIAs to combine private assets and separately managed accounts (SMAs) within one tax-managed portfolio for their clients.
The capability will be available to RIAs looking to combine subscription-based alternatives with ETFs, mutual funds, equity SMAs, fixed income SMAs and direct index SMAs in a single custodial account, the firms said.
The new solution offers “advisors a streamlined, scalable process enabling allocation to alternative investments in a diversified portfolio within a UMA construct,” according to the firms.
Upon launch, Dynasty advisors will be able to incorporate subscription-based alts into their UMA portfolios with asset allocation models created with BlackRock, integrating iCapital’s tools and platform.
“The wealth management industry has for too long been on the precipice of UMAs fulfilling their promise of simplicity and efficiency,” according to Karl Roessner, CEO of Vestmark.
“With what we are launching today, Vestmark is fulfilling that promise,” he said, predicting the new offering will “revolutionize the advisor experience.”
“Dynasty is proud to build upon our existing partnerships with Vestmark, BlackRock, and iCapital to deliver innovative solutions to our growing advisor network,” said Marc Hineman, Chief Operating Officer of Dynasty.
“This enhanced capability was developed in response to demand from our network and is an extension of our existing Model Select program, which has already seen impressive adoption,” according to Hineman.
He added, “The ability to add subscription-based private investments enables advisors to better serve larger relationships with more sophisticated portfolios and equips them with the technology and execution capability to manage those relationships at scale.”
“This collaboration with Vestmark, iCapital, and Dynasty allows us to continue expanding choice to RIAs, providing them with the ability to access private markets, SMAs, as well as public markets in a single account,” according to Eve Cout, Head of Solutions for BlackRock’s U.S. Wealth Business.
“Our dedication to innovating how we deliver custom model solutions empowers advisors to better serve their clients—and it’s driving the rapid growth of our models business,” she said.
Vestmark now supports $1.7 trillion in assets and 4.5 million accounts, it said.
In September, Vestmark announced a partnership with BlackRock to enhance custom model portfolio solutions for RIAs. The partnership was designed to let advisors offer clients investment solutions personalized for tax by combining BlackRock’s model portfolio construction capabilities with Vestmark VAST’s tax management for SMAs, ETFs and equities.
“Today’s announcement is an extension of that, incorporating SMAs to bring further customization to BlackRock’s model offering on Vestmark’s platform,” Cout told WSR on Thursday.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
