Vestmark, a provider of portfolio management software and services, has launched its Model Trading Service (MTS) – model management, trading, rebalancing and account administration outsourcing for Broker-Dealers, RIAs, Banks and their advisors.
Offered through Vestmark Advisory Solutions, (VAS), a wholly-owned, RIA subsidiary of Vestmark, the MTS drives productivity and efficiency of trading home office-created, third-party and advisor-defined models, as either single sleeve accounts (SMAs) as well as multi-sleeve, unified managed accounts (UMAs). This service handles the burden of maintaining client portfolios in line with their respective investment models and allocation targets set by the advisor.
By leveraging the VestmarkONE Portfolio Management platform and its flexible ‘model building block’ technology, the Vestmark MTS provides sophisticated account implementation without the overhead associated with in-house trading, rebalancing, tax-management and ongoing account administration.
Specifically, the Vestmark Model Trading Service supports all discretionary advisory programs including MF/ETF Wrap, SMA, UMA, Rep as PM and Rep as Advisor, as well as equity, mutual funds and ETFs and can support fixed income via third-party managers available on the Vestmark Model Marketplace (VMM).
The MTS also trades models from any firm-approved source including internal product teams, third-party managers and strategists, financial advisors — or any of the 500 models from 120 managers on VMM, and trades accounts and sleeves in accordance with model allocations, positions and drift tolerances.
In addition, MTS rebalances accounts to their respective schedules and nets offsetting trades in each account for multi-sleeve UMAs; offers tax-aware trading with optimal tax-lot selection as well as tax-loss harvesting upon request; and works directly with managers to understand their trading instructions and with advisors to customise trading parameters, restrictions and tolerance settings for their client accounts.
MTS also delivers a full suite of ongoing account administration services including new accounts, cash deposits/requests, scheduled withdrawals, account terminations and model/asset allocation changes.
“Our goal is to enable wealth management firms and their advisors to streamline administrative processes to free up more time to spend with their clients and on growing their businesses. We are extending our suite of award-winning outsourced services with the addition of MTS,” says John Lunny, CEO of Vestmark. “Our solutions are designed to help wealth management firms and asset managers to stay ahead of shifting market dynamics and we are excited to help them succeed.”
