Industry Study Shows VestmarkONE® Platform Improves Efficiency, Drives AUM Growth for Wealth Management Organizations

WAKEFIELD, Mass. – April 19, 2022 – Vestmark, Inc., a leading provider of portfolio management tools and trading software, today announced the results of a commissioned study conducted by Forrester Consulting on behalf of Vestmark. The study, The Total Economic Impact™ of VestmarkONE®, looked at the managed account platform’s efficiencies, cost savings and return on investment across the front, middle and back offices of wealth management organizations.

Forrester Consulting gathered data from decision makers at four Vestmark wealth management clients to evaluate the VestmarkONE platform, considering factors including benefits, costs, flexibility, and risk factors. The data, presented as a single composite of the four organizations, showed that VestmarkONE reduces workloads for advisors by 15% when rebalancing, appropriating investments into the right sleeves, keeping track of portfolio drift and scaling personalized investment targets.

The study reported that the VestmarkONE platform delivers a 66% return on investment over three years with a payback period of less than 12 months for the composite organization.

In addition to supporting advisors, the study found other benefits, including:

• AUM growth—Wealth management firms reported an increase in assets under management for actively managed accounts upwards of 10% in the first year of using the platform, which the study noted was a direct result of advisors gaining access to VestmarkONE’s sophisticated portfolio solutions and advanced modeling capabilities, and enterprises’ ability to offer UMA programs with sleeve-level accounting. Respondents reported that VestmarkONE’s range of features also made it easier to recruit and retain advisors.
• Middle and back-office efficiency—VestmarkONE’s centralized data, established models and automation result in quicker, more efficient rebalancing, reconciliation and trade capture, reducing workloads for middle-office workers by 33% and improved efficiency for reconciliation and reporting increases efficiency of back-office workers by 75%.
• Reduced IT costs – According to the study, there are also benefits of relieving IT from the sunsetting of existing hardware, service & administration of legacy hardware, and upgrading existing hardware, yielding a three-year, risk-adjusted total PV of $3.6 million.

Survey participants provided feedback in numerous areas, notably the VP of equity advisory at one client said “It is a much more efficient way to rebalance and to run model portfolios. You want to run a model across many accounts and rebalance efficiently – compared to what we had prior it’s been a huge win. Advisors have said to us specifically that this tool has saved them a lot of time over our old architecture.”

“Today’s investors are seeking access to customized, institutional-caliber investment strategies that address their values, tax needs and growth objectives,” said Vestmark CEO Mike Blundin. “Personalizing portfolios in a scalable way requires technology that streamlines and automates portfolio construction and rebalancing to create more time for advisors to invest in client relationships and grow assets, and provides efficiencies in areas such as reconciliation and reporting. We couldn’t be more pleased by the results of the Forrester Consulting assessment of VestmarkONE, which underscores our unique ability to help wealth management organizations grow assets, recruit advisors, increase efficiency, and reduce costs.”

About Vestmark

Headquartered in Wakefield, Mass. and founded in 2001, Vestmark is a leading provider of portfolio management solutions and outsourced services for financial institutions and their advisors, enabling them to efficiently manage customized client portfolios through an innovative technology platform. Supporting over $1.5 trillion in assets and 5.5 million accounts, Vestmark is a partner to some of the largest and most respected wealth management firms. For more information about Vestmark’s solutions, call (781) 224-3640 or visit www.vestmark.com.

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