Vestmark announced a partnership with BlackRock that aims to combine advanced portfolio management with tax management capabilities.
Specifically, the partnership will combine Vestmark's VAST tax management capabilities across stocks, ETFs and separately managed accounts with BlackRock's capacity for building model portfolios at scale.
wide, which is not an abbreviationis an outsourced portfolio management service focused on customization at scale out in early 2023. It can be thought of as a unified managed custom account that can include a direct indexing sleeve, separately managed accounts, mutual funds, ETFs and individual securities. Vestmark has an active tax overlay equipped with daily tax optimization capability at the account level.
Through the partnership with BlackRock, which now manages more than $10.6 trillion in assetsadvisors will be able to access a variety of standard and advisor-customizable model portfolios, all of which are managed and rebalanced through Vestmark's Market Manager, which currently hosts more than 1,200 model strategies.
At the heart of the combined offering is Vestmark's unified managed account platform, which integrates the implementation of mutual funds, ETFs, separately managed accounts from equity, fixed income SMAs and alternatives, all within a single custodial account.
According to Vestmark, more than 65,000 advisors from various firms manage $1.5 trillion in assets through its platform.
“Partnering with Vestmark allows us to continue to expand our choice for RIAs who want our portfolio design solutions,” Eve Cout, head of Portfolio Design and Solutions within BlackRock's US Wealth Advisory business, wrote in the statement.
Vestmark is not the only firm that the world's largest asset manager has partnered with or invested in recently.
Earlier this month, BlackRock announced a partnership with Partners Group to launch a multi-private markets model portfolio in 2025. The joint offering will include private equity, private credit and real assets in a single portfolio and will be managed by both firms.
Blackrock (along with Fidelity, Franklin Templeton and State Street Global Advisors) partnered with Envestnet to provide RIA clients access to fund strategists' portfolios of ETFs and mutual funds managed by those asset managers on the latter's platform. First announced in June, VNRs are supposed to you have access to those managed portfolios through Envestnet's RIA Marketplace starting October 1.
In July, Chicago-based asset management platform GeoWealth announced that it had raised $18 million in growth investment funding, with BlackRock as a new lead investor.