AssetMark Launches Morningstar Wealth Investment Strategies for Financial Advisors

Rhea-AI Summary

AssetMark (AMK) has announced the addition of Morningstar Wealth as a third-party strategist on its platform, offering financial advisors access to a wide range of model portfolios and separately managed accounts (SMAs). This launch is part of the firms' strategic collaboration, following AssetMark's agreement to acquire approximately $12 billion in assets from Morningstar Wealth's Turnkey Asset Management Platform (TAMP) in June 2024.

The new strategies include Morningstar Equity SMAs, ETF Models, and Active/Passive Models, designed to meet diverse investor needs. Morningstar Wealth's Investment Management team manages approximately $316 billion in assets globally. This addition aims to empower advisors with more resources and tools to serve their clients effectively.

Positive

• Addition of Morningstar Wealth strategies expands AssetMark's platform offerings
• Strategic collaboration with Morningstar Wealth, including $12 billion asset acquisition
• Access to Morningstar's Investment Management team with $316 billion AUMA globally
• Diverse range of new investment strategies added to meet various investor needs

Negative

• None.

Insights

Financial Analyst

The addition of Morningstar Wealth's strategies to AssetMark's platform is a strategic move that could enhance AssetMark's competitive position. While it's not directly impactful to financials, it broadens AssetMark's offering, potentially attracting more advisors and assets.

The collaboration, including the pending $12 billion asset acquisition, signals AssetMark's growth ambitions. This could lead to increased revenue streams and market share in the wealth management sector. However, the true impact will depend on advisor adoption rates and the performance of these new strategies.

Investors should monitor AssetMark's assets under management and client acquisition metrics in upcoming quarters to gauge the success of this partnership.

Market Research Analyst

This partnership reflects a broader trend in the wealth management industry towards platform consolidation and expanded investment options. By integrating Morningstar's respected strategies, AssetMark is positioning itself as a one-stop-shop for financial advisors.

The diverse range of new strategies, including SMAs and ETF models, caters to the growing demand for personalized investment solutions. This move could help AssetMark capture a larger share of the $316 billion AUMA that Morningstar's Investment Management team oversees globally.

Long-term, this collaboration could strengthen AssetMark's brand reputation and market position, potentially leading to increased advisor loyalty and client retention.

A suite of new strategies added to AssetMark platform to help advisors serve their clients.

CONCORD, Calif., Sept. 12, 2024 (GLOBE NEWSWIRE) -- AssetMark, a leading provider of wealth management and technology solutions for financial advisors, announced the addition of Morningstar Wealth, a division of independent investing insights firm Morningstar, as a third-party strategist on the AssetMark Platform.

This launch will enable financial advisors currently working with AssetMark to access a wide range of model portfolios and separately managed accounts (“SMAs”) from the Morningstar Investment Management team which has approximately $316 billion of assets under management and advisement (“AUMA”) globally.

Today’s addition of the Morningstar Wealth strategies marks a further step in the firms' strategic collaboration. As announced in June 2024, AssetMark agreed to acquire approximately $12 billion in assets from Morningstar Wealth’s Turnkey Asset Management Platform (TAMP), with the transaction expected to close in late 2024.

“Morningstar has a long history of providing investors with industry-leading investment products and insights,” said David McNatt, EVP of Investment Solutions for AssetMark. “Adding these strategies to AssetMark’s platform is the latest step in our mission to empower advisors with the necessary resources and tools to best serve their clients, and another pivotal moment in our ongoing collaboration with Morningstar.”

Through this launch, AssetMark adds a suite of Morningstar Wealth strategies to its platform, providing its advisor clients with several new options to meet a diverse array of investor needs. The strategy types include:

• Morningstar Equity SMAs – Employing a valuation-driven approach to investing, seven SMA strategies cover various market capitalizations, both international and U.S., and are built for long-term growth.
• Morningstar ETF Models – Diversified core portfolios focused on growth, income, and risk alignment with investors' goals, investing primarily in diversified portfolios of domestic and international ETFs.
• Morningstar Active/Passive Models – Flexible strategies across different risk tolerances and tax sensitivities, which balance active and passive investments with the goal of helping investors achieve their goals.
  

“Advisors are central to our mission of empowering investor success, and since announcing our collaboration in June, we have been looking forward to making our comprehensive and diversified strategies available to more advisors through the AssetMark platform,” said Daniel Needham, President of Morningstar Wealth. “Our strategies draw on the best of Morningstar and are designed to help investors reach their financial goals.”

About AssetMark
AssetMark operates a wealth management platform whose mission is to help financial advisors and their clients. AssetMark, together with its affiliates AssetMark Trust Company, Voyant, and Adhesion Wealth Advisor Solutions, serves advisors at every stage of their journey with flexible, purpose-built solutions that champion client engagement and drive efficiency. Its ecosystem of solutions equips advisors with services and capabilities to help deliver better investor outcomes by enhancing their productivity, profitability, and client satisfaction. 

With a history going back to 1996, AssetMark has over 1,000 employees, and its platform serves over 9,200 financial advisors and over 261,000 investor households. As of June 30, 2024, the Company had over $119 billion in platform assets. AssetMark, Inc. is a Registered Investment Adviser with the U.S. Securities and Exchange Commission. For more information, please visit www.assetmark.com. Follow us on LinkedIn.

About Morningstar Wealth
Morningstar Wealth is a global organization dedicated to empowering both advisor and investor success. Our extensive range of offerings includes the Morningstar International Wealth Platform, model portfolios managed by the Morningstar Investment Management team ($316 billion in assets under management and advisement*), Morningstar Office (portfolio management software), ByAllAccounts (data aggregation and enrichment), Morningstar Investor (individual investor platform), and Morningstar.com.
*Includes AUMA for advisory services offered by certain Morningstar subsidiaries that are authorized in the jurisdictions in which they operate to provide investment management and advisory services

About Morningstar Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $316 billion in AUMA as of June 30, 2024. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X (formerly known as Twitter) @MorningstarInc.

Media Contacts:

AssetMark
Vesselina Davenport
Vesselina.Davenport@AssetMark.com

Morningstar Wealth
Stephanie Lerdall
newsroom@morningstar.com

FAQ

What new strategies has AssetMark (AMK) added to its platform?

AssetMark has added Morningstar Wealth strategies to its platform, including Morningstar Equity SMAs, ETF Models, and Active/Passive Models, providing financial advisors with new options to meet diverse investor needs.

How much in assets is AssetMark (AMK) acquiring from Morningstar Wealth's TAMP?

AssetMark agreed to acquire approximately $12 billion in assets from Morningstar Wealth's Turnkey Asset Management Platform (TAMP), with the transaction expected to close in late 2024.

What is the total AUMA of Morningstar's Investment Management team globally?

Morningstar's Investment Management team has approximately $316 billion of assets under management and advisement (AUMA) globally.

When did AssetMark (AMK) announce its collaboration with Morningstar Wealth?

AssetMark announced its strategic collaboration with Morningstar Wealth in June 2024, which included the agreement to acquire assets from Morningstar Wealth's TAMP.