HD Vest Financial Services has announced that the firm’s innovative new portfolio management service, VestAdvisor Select, has grown rapidly in the year since its launch, with assets managed through the service now surpassing US$700 million.
The majority of AUM expansion for VestAdvisor Select to date has been driven by the acquisition of new assets, rather than by market appreciation.
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VestAdvisor Select takes a unique "dual discretion" approach, under which the firm’s portfolio management team establishes initial investment models focused on specific client goals; individual advisors can then choose to either completely align with the team’s selections for each model they utilize or substitute up to 100% of the portfolio.
The HD Vest home office team then assists in the ongoing management of the resulting customized portfolios. This structure creates a partnership between the HD Vest portfolio management team and advisors and enables clients to benefit from the full spectrum of the firm’s investment expertise.
While each model’s strategy is preset, advisors have full discretion in modifying the initial models on a tactical basis to incorporate investments in which they or their clients have high conviction. This enables advisors to create highly customized portfolios that truly fit each client’s risk profile, long term goals and financial product preferences.
Launched in October 2012, VestAdvisor Select – part of HD Vest’s broader advisory platform, including VestAdvisor – offers advisors and their clients a comprehensive set of 180 initial investment models built to help clients progress toward specific objectives, including enhanced tax efficiency, greater domestic exposure, increased participation in alternatives or commodities, and many others.
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By GlobalDataVestAdvisor Select also creates a smooth and integrated framework for the HD Vest team and independent advisors to work together to manage these customized client portfolios by delegating time-consuming and routine administrative functions such as cash management, rebalancing and monitoring to the HD Vest home office.
HD Vest is collaborating with leading investment solutions firm Rogerscasey to further support the future growth of the VestAdvisor Select platform. Rogerscasey works with HD Vest’s portfolio management team to develop capital markets assumptions, identify potential returns and risk factors and provide strategic portfolio modeling support.
Roger Ochs, president and CEO of HD Vest, said, "Our innovative ‘dual discretion’ approach to asset management through the VestAdvisor Select investment management platform reflects our determination to provide our advisors and their clients with the market-leading service offerings, choice and flexibility they need to work toward their goals. The remarkable response we have seen to the VestAdvisor Select service in only one year – with $700 million in client assets now managed under the program – shows very clearly that advisors want the increased flexibility that comes from engaging with our advisory platform to manage their clients’ assets, while investors recognize the value of putting all of our investment management resources to work alongside their advisor to drive toward their goals."
Gene Bell, president and CEO of Gene Bell & Associates in Bellingham, WA and an HD Vest-affiliated financial advisor, said, "For our firm, VestAdvisor Select is as much a practice management resource as a portfolio management service, and it has become a crucial part of our business in just one year. The service allows me to combine the strategies and insights of HD Vest’s portfolio management team with my own investment philosophy and product preferences, while scaling the level of customization in the portfolio to suit my clients’ goals. The ‘dual discretion’ structure has also helped me focus on growing my business by supporting the full spectrum of my clients’ day-to-day account management needs, including cash withdrawals, rebalancing, monitoring and more."
