Deals & People March 1, 2023

Adviser Product Partnerships

RBC C&C selects Vestwell as 401(k) provider; Sanctuary Wealth partners with Pontera on retirement asset management; Prudential, Vitality Global expand Latin America partnership.

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RBC Clearing & Custody Selects Vestwell as Exclusive Small Plan Retirement Provider

Vestwell announced its small plan 401(k) and 403(b) solutions are now available to thousands of adviser clients of RBC Clearing & Custody.

Digital 401(k) recordkeeper Vestwell will enable advisers to scale their retirement plan practice and customize offerings. Vestwell’s technology minimizes administrative workload and provides the tools needed to maximize participant engagement.

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“After the passing of SECURE 2.0, we’ve seen 401(k) solutions increasingly become a priority for small business owners across the United States,” said Brett Thorne, president of RBC C&C, in a statement. “This demand, with the right platform in place, creates a natural pathway for our adviser clients to rapidly expand their wealth practices.”

Vestwell’s cloud-based digital recordkeeping platform provides a more affordable and efficient architecture compared to legacy technology stacks, which Vestwell says can be expensive and cumbersome for financial advisers to grow their businesses.

“We are excited to be the exclusive 401(k) provider of RBC Clearing & Custody and bring their thousands of the ability to deliver a white-labeled offering that’s right for them including modern interactions, real-time communications, and transparent costs. Vestwell is committed to empowering advisers to run successful practices and ultimately help close the retirement savings gap in this country,” said Aaron Schumm, founder and CEO of Vestwell, in a statement.

Sanctuary Wealth Partners With Pontera on Retirement Plan Management

Sanctuary Wealth announced a partnership with financial technology company Pontera Solutions Inc., which will give advisers the ability to provide more comprehensive oversight on clients’ retirement assets.

Advisers with Sanctuary Wealth will be able to manage, trade and bill on held away accounts, including 401(k)s and 403(b)s.

“Our partnership with Pontera empowers our advisers to provide 360[-degree] retirement planning services to their clients by giving them a more complete financial picture and the ability to manage the client’s entire portfolio,” said Robert Walter, president of Sanctuary Wealth, in a statement.

Pontera will integrate with Orion, Sanctuary Wealth’s portfolio management software, making clients’ held away assets visible to advisers for management, reporting and billing. 

“Through Orion’s data feed integration with Pontera, we’re clearing a path for advisers to efficiently manage and trade held-away accounts,” Brian McLaughlin, president of Orion Adviser Technology LLC, said in a statement. “Fueling this partnership between Pontera and Sanctuary Wealth will give advisers a deeper view of their clients’ assets, leading to stronger retirement savings guidance.”

Prudential, Vitality Global Expand Partnership in Latin America

Prudential Financial and Vitality Global, a wellness company offering smart InsurTech, have entered a 10-year expanded partnership. Prudential will leverage Vitality’s model to complement its Total Wellness offering throughout Latin America. The new agreement expands on the partnership the two firms launched in 2020 offering wellness services in Brazil and Argentina.

“Based on the outstanding results of our joint offering in Brazil and Argentina and aligned with our mission to democratize access to Wellness, I am proud that our expanded partnership with Vitality will allow Prudential to help more people to live longer and better lives,” said Federico Spagnoli, vice president of international wellness solutions at Prudential International Insurance, in a statement.

As part of Prudential’s Total Wellness program, participants can track their health progress using a smartphone or fitness tracker. Members can earn rewards for meeting weekly activity goals. Additionally, participants can earn a free wearable device if they meet their monthly activity goals. Insurance customers can also earn an annual discount on insurance premiums based on their Vitality status.

“Together with Prudential, the opportunity we have to impact a continent’s health is hugely exciting for us,” said Barry Swartzberg, CEO of Vitality Global, in a statement. “Our expansion across Latin America will enable us to enhance the lives of tens of millions of people in the coming years.”

Client Service March 1, 2023

BlackRock Sells Direct-to-Consumer Robo-Advisory Business to Ritholtz

BlackRock is selling FutureAdvisor’s direct-to-consumer advice and investment business after acquiring the firm in 2015 as a business-to-business platform for advisers.

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BlackRock Inc. is shedding the direct-to-consumer business of its FutureAdvisor division in a sale to Ritholtz Wealth Management LLC, a registered investment adviser and retirement planning firm with $2.7 billion in assets, according to the companies.

Ritholtz will take over FutureAdvisor’s direct-to-consumer robo-business, continuing to provide advisers with technology-enabled advice and investing capabilities, the company said in a statement. The firm, which also offers retirement investments for employers and employees, did not disclose terms of the deal. 

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“Ritholtz expects that FutureAdvisor clients will seamlessly transition to Ritholtz, where they’ll receive access to dedicated goals-based financial planning and cutting-edge technology,” a company statement said. “Ritholtz advisors and support staff are looking forward to helping them achieve success in all aspects of their financial lives.”

BlackRock acquired FutureAdvisor in 2015 with a business-to-business focus to meet demand for “digital wealth management” for financial advisers serving high-net-worth clients. In 2016, FutureAdvisor partnered with U.S. Bank Wealth Management to offer automated investing and advice to individual investors using U.S. Bancorp Investments.

“We are proud of having served FutureAdvisor clients over the last eight years and are confident that Ritholtz, a national, multi-billion-dollar wealth management firm, has the ability to meet the demands of clients seeking digital solutions for their investing needs,” BlackRock wrote in a statement. “BlackRock will continue to serve wealth management firms with our Aladdin Wealth technology offerings.”

The direct-to-consumer robo-advisory model has come under pressure due to tight fees on relatively smaller accounts, with robo-advisory Blooom shutting down late last year. Morgan Stanley bought up the firm’s technology and brought on some of its top leaders, the New York-based firm said at the time.

 

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