Vanguard has announced that it is to acquire Just Invest, a provider of tax-managed, tailored wealth management technology, including its direct indexing facility, Kaleidoscope.
“Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients,” says Tim Buckley, Vanguard Chairman and CEO. “Wise investments in technology are an important equalizer, enabling us to democratize 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.”
Founded in 2016, Just Invest saw accelerating new asset growth in the first half of 2021 as assets under management surpassed USD1 billion. Just Invest leverages large-scale data analysis, quantitative algorithms, and risk modeling to deliver scalable portfolio and tax management through its direct indexing platform, designed to foster greater client engagement and world-class economics for both financial advisers and their investors. The firm says that Just Invest’s capabilities will augment Vanguard’s USD3 trillion financial intermediary business, serving registered investment advisors (RIA), bank, and broker-dealer financial advisers.
Just Invest’s platform uses sophisticated portfolio management tools traditionally available only to institutional or ultra-high-net-worth investors. The approach can support a high degree of portfolio customization, providing advisors with the ability to personalise investment portfolios to reflect investors’ values, financial objectives, and tax-loss-harvesting needs. In complement to Vanguard’s world-class product line-up, direct indexing can offer tax optimisation benefits and serve as a values-based investing tool. Vanguard’s direct indexing offer will build upon a pilot program offered to its RIA clients over the past year and a half, powered by Just Invest.
“Investing is inherently personal, and advisers are looking to better serve their clients through more customisable and tech-driven solutions. The success of our pilot program validated both the need in the marketplace and the compelling offer developed by Just Invest,” says Tom Rampulla, managing director of Vanguard Financial Advisor Services. “We’ve put tremendous focus on our financial intermediary business over the last decade to serve as a trusted and strategic partner to advisors. We are confident that Just Invest’s direct indexing capabilities will be a valuable complement to our ongoing efforts to help advisors redefine and underscore their client value proposition.”
“Since our founding, Just Invest’s mission has been to empower financial advisers through modern and scalable custom asset management technology like direct indexing, enabling them to focus on what matters most—their clients,” says Jonathan Hudacko, CEO of Just Invest. “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.”