Press Release

Vestmark Introduces the Vestmark Manager Marketplace

Wakefield, MA –March 16, 2016– Vestmark, a premier SaaS based technology provider of comprehensive portfolio management and trading solutions, announced today the launch of Vestmark Manager Marketplace (VMM), a solution designed to connect asset managers efficiently with sponsors (RIAs, Banks, Broker Dealers) who use third-party management in model portfolio format or in separately managed accounts (SMAs).

VMM represents the next evolution of Vestmark’s “investment platform as a service”, building upon the innovative SaaS and award-winning BPO services leveraged by their clients today. VMM provides sponsors with unprecedented transparency and efficiency for accessing the expertise of third-party managers while providing asset managers with access to broad distribution among advisors through a single contract with the VMM service. 

“When sponsors seek to leverage the expertise of third-party asset managers, they are often met with a limited set of options if they need to outsource manager access,” said Rob Klapprodt, president of Vestmark. “VMM is a custodian-agnostic service and because Vestmark does not offer advice, our entire focus is on helping our clients efficiently deliver investment solutions to advisors and investors and providing asset managers an enriching, transparent distribution channel. VMM provides independent access to the intellectual capital of asset managers, removing the friction sponsors face in contracting with asset managers and performing operational due diligence. Combined with the broader set of capabilities within VestmarkONE, sponsors can easily utilize the strategies available in VMM across any advisory program.”

Participating asset managers sign a single contract and deliver models to VMM or manage accounts directly using Vestmark technology. VMM manages contracts and relationships with multiple sponsors, tracks assets under management, and handles fee calculation and collection.

Sponsors sign a single contract and obtain access to multiple strategies from an array of asset managers and investment strategists. VMM handles operational due diligence, manager negotiation and contracting, fee calculation and payment.

Morningstar Investment Services LLC, a registered investment adviser and part of the Morningstar Investment Management group, will serve as a strategist and make its target risk, outcome-based, and select equity strategies available to advisors through the VMM platform.  

Daniel Needham, president and CIO of Morningstar Investment Management LLC, said, “Helping advisors create greater efficiencies in their practices and deliver better investment outcomes to their clients is core to our mission of helping investors reach their financial goals. We build our portfolios for the long term and manage them with a keen eye toward risk putting the needs of the investor front and center. We’re pleased to be part of the Vestmark Manager Marketplace.”

Wilshire Funds Management (“WFM”), the global investment management business unit of Wilshire, will also distribute their portfolios and research through the VMM platform.

“Wilshire’s approach to constructing dynamic asset allocation portfolios, access to institutional-caliber investment managers, and market leading risk management tools provide advisors with high quality, outcome-oriented solutions. Vestmark’s Manager Marketplace provides us with an efficient way to deliver our portfolios and research in a competitive cost structure,” says Jason Schwarz, President of Wilshire Funds Management.

VMM is launching with multiple sponsors and access to a rapidly growing roster of more than 40 asset managers and investment strategists.


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