Financial services giant Vanguard has agreed to buy US-based wealth management technology provider Just Invest for an undisclosed sum.
The deal also includes Kaleidoscope, which offers customisable direct indexing.
Just Invest was founded in 2016 and this year its assets under management surpassed $1bn (£725m, €845m). It leverages large-scale data analysis, quantitative algorithms, and risk modelling to deliver portfolio and tax management services through its direct indexing platform.
Tim Buckley, Vanguard chairman and chief executive, said: “Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients.
“Wise investments in technology are an important equaliser, enabling us to democratise valuable investment capabilities and products. We are excited to welcome the Just Invest team and direct indexing capabilities to Vanguard to better serve our clients.”
Personalised solutions
Just Invest’s platform uses portfolio management tools that traditionally were only available to institutional or ultra-high net worth investors. These provide advisers the ability to customise investment portfolio to reflect their clients’ values, objectives, and tax-loss-harvesting needs, Vanguard said.
“Investing is inherently personal, and advisers are looking to better serve their clients through more customisable and tech-driven solutions,” said Tom Rampulla, managing director of Vanguard Financial Advisor Services. “The success of our pilot program validated both the need in the marketplace and the compelling offer developed by Just Invest.
“We’ve put tremendous focus on our financial intermediary business over the last decade to serve as a trusted and strategic partner to advisers. We are confident that Just Invest’s direct indexing capabilities will be a valuable complement to our ongoing efforts to help advisers redefine and underscore their client value proposition.”
Jonathan Hudacko, chief executive of Just Invest, added: “Since our founding, Just Invest’s mission has been to empower financial advisors through modern and scalable custom asset management technology like direct indexing, enabling them to focus on what matters most—their clients.
“With Vanguard’s tremendous brand, reach, and investment leadership, we will be able to help even more advisors drive better investment outcomes for their clients.”
Vanguard expects the M&A deal to complete in Q4 2021.
