Charlotte, N.C.—June 20, 2019—Adhesion Wealth® (Adhesion), a Vestmark company, today announces the expansion to their Outsourced Chief Investment Officer (OCIO) roster, by entering into a number of strategic relationships with multiple research and strategy providers. These relationships enable RIAs and wealth managers to utilize the Adhesion platform to access institutional-caliber research and manager selection while also identifying an OCIO that matches the style and investment preferences desired by the advisor.
"We have worked hard to identify well respected OCIOs that span a number of unique methodologies and philosophies to make available to our advisory clients through the Adhesion Platform. Our OCIO Marketplace, known across the Adhesion advisor community as Unified Managed Programs (UMAP), is a great example of a curated OCIO roster with institutions that have well-established track records, and can help fast-track outsourcing to enable advisors to become independent and start generating practice revenue as quickly as possible," said Barrett Ayers, President of Adhesion Wealth. "There are platforms out there that force-fit their own for-profit OCIO services on their advisory clients, but we are big believers of open architecture so advisory firms can pick the style and methodology that best suits their practice."
According to a recent survey by Fidelity Clearing & Custody Solutions®, advisors who outsource grow faster than advisory firms that do not embrace outsourcing. Forty percent (40%) of advisors polled outsource investment management and portfolio construction. On average, advisors who embraced outsourcing were able to manage more assets ($145 million vs $110 million) and resulted in higher overall per-advisor compensation ($365,000 vs. $335,000). The study participants indicate that this growth can be attributed to the fact that outsourcing allows an advisor to focus on other business-building functions such as increasing the time spent with clients as well as the introduction of other value-added services.
Further, the study indicated that in addition to AUM and compensation growth, most firms (84%) cited an overall level of success with their outsourcing provider, noting an increase in time savings, access to more qualified experts and rise in overall productivity.
Mr. Ayers further noted: "For firms that don't wish to absorb the cost of developing an in-house competency around manager research, due diligence and asset allocation, our OCIO partners do a fantastic job of helping advisors understand their investment story so they, in turn, can confidently and faithfully communicate the unmatched value the firm is providing to its clients. Our OCIO partners are well-known within the industry for developing portfolios using high conviction managers, thoughtful asset allocation and research depth to help advisors support their clients in achieving their individual goals."
Adhesion's roster of Open Architecture UMAP providers includes:
Aon Hewitt Investment Consulting
Aon Hewitt Investment Consulting is a global institutional investment consulting firm that builds solutions requiring complex approaches through its expertise in asset allocation, manager research, alternative investments, actuarial statistics and portfolio construction. The firm has $2.088 trillion in U.S. assets under advisement, as of Dec. 31, 2018.* With more than 275 investment consulting professionals, as of Dec. 31, 2018, Aon works with registered investment advisors, broker/dealers, insurance companies, private banks, and ultra-high-net worth platforms. Six multi-asset mutual fund/ETF model portfolios presented by Aon in this program cover the risk spectrum from Cautious Income to All Equity, for investors seeking a multi-asset, balanced risk income solution or an all-equity strategic factor portfolio.
* As of 12/31/2018, represents U.S. retainer non-discretionary assets.
Capital Market Consultants
Capital Market Consultants, Inc. (CMC) is a boutique research consulting firm exclusively serving the Outsourced Chief Investment Officer needs of financial advisors. CMC provides a comprehensive range of investment management support services including asset allocation, portfolio construction, investment manager research and ongoing due diligence, performance reporting and holdings-based attribution, private label-able total return and income-generating model portfolios, custom projects as well as various forms of client communications. Service needs, financial arrangements and engagement with investment committees are designed with each individual practice in mind to fit need, budget and timeline. Services are available on an ala carte basis, if desired. Many of CMC deliverables can be white labeled. Research work for advisors is always documented, delivered and available through a secure firm-level web portal for downloading to establish a record documenting ongoing fiduciary oversight.
Chicago-based Greenrock, recently added to the UMAP program, provides Adhesion platform users with eight models which seek to reduce volatility and increase income for investors. The firm's team of market experts rely on thorough institutional-quality research to select products which can help advisors and their clients become less reliant on fixed-income investments for long-term returns. In addition to the model portfolios, Adhesion customers can also access Greenrock's equity, alternative, and fixed-income strategies through individual sleeves which can be customized for investors.
Greenrock's team conducts rigorous due diligence and monitoring on asset managers, and searches all over the world for managers whose strategies can deliver high returns and growth dividends over the long term. As part of the due diligence and monitoring processes, Greenrock professionals meet face-to-face with domestic and international asset managers on a regular basis. The firm maintains its independence by working only with RIAs and wealth managers.
Horizon Investments focuses on modern goals-based investment management. Our mission is to empower financial advisors to help their clients achieve their most important financial objectives throughout life. We proudly work with advisory businesses, RIAs and family offices where the complexity of their investment, risk mitigation and practice management issues demand every minute of the day. We understand the life of a financial advisor because our firm was founded by financial advisors.
We have extensive experience building and managing entrepreneurial advisory businesses and the ability to provide a high level of proactive discovery, analysis and solution development. Our multi-disciplined team provides access to a deeper set of investment analytics, research, technology and thought leadership - serving as a complement to your current philosophy.
OneAscent, which was also recently added to the UMAP program, seeks to empower advisors with the freedom and solutions they need to effectively serve their clients. We understand the challenges advisors face because our firm was built by advisors, for advisors. Our suite of values-based investment options includes turnkey models and individual sleeves, designed to provide flexible solutions for a range of desired outcomes.
OneAscent's turnkey model portfolios are offered across five risk-based allocations and four different account sizes. Free yourself up to focus on your highest and best use—serving families well and continuing to grow your business. With world-class managers and a uniform process, you'll have flexible solutions to meet every client's needs.
Our individual sleeves provide low-cost, tax efficient strategies across a broad range of asset classes. By combining OneAscent's values-based investing philosophy with leading investment managers, your clients can align their investments with their values.
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Adhesion Wealth® is a leading provider of outsourced managed accounts, including sophisticated and customized investment solutions, integrated with practice management tools and outsourced back- and middle-office, to wealth advisory firms. These solutions enable advisors to easily provide separately managed account (SMA) and unified managed account (UMA) portfolios and create personalized solutions for investors. Its platform empowers advisors with highly scalable, flexible, and customized portfolio solutions, enabling them to deliver better investor outcomes.
Adhesion Wealth is a wholly-owned subsidiary of Vestmark, Inc. For more information, call (888) 295-8351 or visit www.adhesionwealth.com.
Headquartered outside of Boston, MA and founded in 2001, Vestmark is a leading provider of portfolio management/trading solutions and outsourced services for financial institutions and their advisors, enabling them to efficiently manage and trade customized client portfolios through an innovative SaaS platform. Supporting over $1.4 trillion in assets and 4.5 million accounts, Vestmark is a trusted partner to some of the largest and most respected wealth management firms. For more information about Vestmark’s solutions, call (781) 224-3640, email firstname.lastname@example.org, or visit www.vestmark.com.
JConnelly for Vestmark