Vanguard has entered into a definitive agreement to buy tech-driven asset manager Just Invest for an unknown sum.
Established in 2016, Just Invest provides tax-managed, tailored wealth management technology including Kaleidoscope, a customisable, direct indexing offer.
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The firm oversees around $1bn in assets managed with a ‘direct indexing’ strategy.
Leveraging large-scale data analysis, quantitative algorithms, and risk modelling, it delivers scalable portfolio and tax management through its direct indexing platform.
Just Invest’s capabilities are expected to accelerate Vanguard’s $3trn financial intermediary business that caters to registered investment advisors (RIA), bank, and broker-dealer financial advisers.
The acquisition comes as Vanguard looks to leverage both internal and external talent, resources, and capabilities to rollout solutions that drive better client outcomes.
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By GlobalDataIt also positions the firm to better serve advisors through cost-effective access to tax-efficient, personalised investment solutions.
Vanguard chairman and CEO Tim Buckley said: “Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients.
“Wise investments in technology are an important equalizer, enabling us to democratise 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.”
Just Invest’s platform features portfolio management tools traditionally available only to institutional or ultra-high-net-worth (UNHW) investors.
It is said to be complementary to Vanguard’s product lineup, direct indexing offers tax optimisation advantages and serve as a values-based investing tool.
Vanguard is running a pilot programme with Just Invest for RIA clients over the past year and a half.
The company said it will collaborate with the Just Invest team to expand its offer to a broader set of clients and build upon existing capabilities.
Just Invest CEO Jonathan Hudacko said: “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.”
