Deals & People December 19, 2023

Vanguard Names New Head of Financial Adviser Division

Amma Boateng will assume the role in January, replacing Tom Rampulla, who is retiring after 35 years at the firm.

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The Vanguard Group has promoted Amma Boateng to head its financial adviser services division, the firm announced Tuesday.

Boateng will replace the outgoing Tom Rampulla, who will retire as managing director and head of the asset manager’s Financial Advisor Services group. Boateng, currently head of the broker/dealer channel within the division, will take the managing director position and join Vanguard’s senior leadership team, effective January 1.

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Amma Boateng

Boateng joined Vanguard in 2004 and has worked in the firm’s investment management, finance and personal investor divisions, according to the announcement. She helped build and lead its adviser solutions business responsible for technology, portfolio solutions and thought leadership.

As head of the broker/dealer channel, Boateng led the team serving wirehouse, independent and regional broker/dealers with investment products and services.

“Amma has been central to building a sophisticated offer for our financial adviser clients,” Tim Buckley, Vanguard’s CEO and chairman, said in a statement. “She brings deep expertise in global capital markets, strong digital acumen, and a passion for helping advisors drive investment success for individual investors.”

Rampulla took the helm of the advisory division in 2015, growing it to $3 trillion in assets and more than 150,000 financial advisers in investments, services, education and research. When his appointment was announced, the division oversaw $1 trillion in assets, according to an announcement at the time.

He joined the firm in 1988 and held leadership roles including expanding distribution of the firm’s exchange-traded-fund products and as the first head of Vanguard’s U.K. and European operations.

“For more than 35 years, Tom has worked tirelessly for Vanguard clients and crew,” Buckley said. “His passion for serving individual investors and those who serve them has elevated the FAS business to new heights—investing in crew, leveraging technology, and redefining service.”

Vanguard is the country’s largest provider of target-date funds by assets, followed by Fidelity Investments and Capital Group’s American Funds, according to data from Simfund, which, like PLANADVISER, is owned by ISS STOXX.

Data & Research December 18, 2023

Envestnet Expects Financial Advisers to Expand Further Into 401(k) Plan Business

The firm also predicts rising demand for end-to-end technology solutions and personalized services.

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Financial advisers, not just retirement specialists, are expected to pursue the 401(k) plan business at greater rates in 2024 and beyond, while demand for end-to-end technology solutions and personalized services will continue to grow, according to research from Envestnet Inc.

“The opportunity [in the 401(k) business] is significant, as only about half of U.S. workers have access to an employer-sponsored retirement plan today,” Chris Shutler, head of strategic development and market intelligence for Envestnet, says in an emailed response. “The retirement market is expanding, driven by a number of states mandating that small businesses provide employees with a plan, as well as SECURE Act 2.0 increasing available tax credits for such employers.”

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Envestnet’s latest report on “Trends to Watch in 2024” revealed a shift among employers to integrate financial wellness tools into their benefits packages as a competitive advantage. This integration is expected to promote higher employee satisfaction, productivity and retention rates. Envestnet’s report anticipated the workplace will become a crucial avenue for financial advisers to attract new assets.

“There are several reasons advisers should consider adding 401(k) capabilities, but chief among them is organic growth—the ability to offer high-quality advice to plan participants expands the potential to capture traditional wealth accounts,” Shutler says.

Shutler notes Envestnet’s recent announcement of a partnership with recordkeeper Empower on a full-service 401(k) plan available to advisers. He says the offering, called Retire Complete, gives advisers an “Easy Button” when they want to offer a plan.

All Together Now

The report also highlighted significant demand among advisers for end-to-end technology platforms and improved integrations for managing client portfolios. Among advisers, 61% want an all-in-one bundled financial technology software, platform and solution. In the report, Envestnet noted that there are more than 400 wealthtech solutions in the market, creating a need for connectivity between systems and software providers.

Firms are also focused on greater adoption and use by advisers of existing tech solutions to maximize investments made in these systems. Key areas highlighted in the report as critical to the adviser experience included the integration of client engagement tools and improvements in custody workflows.

“Increasingly, we’ve seen more of our clients looking to consolidate and streamline the technology and solutions their advisers utilize, to provide a more unified experience for customers and make it easier for them to do business,” Shutler said in a statement accompanying the report.

AI Can Personalize

The research also indicated growing client demand for personalized services by which advisers can provide specific advice and action steps. While 60% of advisers recognize the potential of personalized data insights to improve their business or advice to clients, many have yet to implement them.

Firms leveraging artificial intelligence for client insights, for instance, reported enhanced efficiency and improved client interactions and service delivery. Those positive results are boosted when advisories use AI as part of customer relationship management systems that provide alerts for advice across areas such as wealth, lending or banking.

“AI-powered next best actions will disrupt the standard adviser workflow,” Craig Iskowitz, CEO and founder of the Ezra Group, shared his thoughts on the report. “These systems will drive efficiency, productivity and sales results to unheard of levels.”

The report draws from research published by Envestnet’s Market Intelligence Team, including an analysis of market data, third-party research, as well as an Envestnet survey fielded earlier this year.

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