Wealth Advisor Growth Network (WAGN) has unveiled a new platform to help independent wealth managers better serve their clients and grow their practice.
The platform is launched in partnership with WealthShield, LibertyFi, and Morningstar.
Morningstar will allow independent advisers to use its index offering through WAGN’s platform. This will enable them to create direct index approaches to serve their investor clients across a range of asset classes, investment styles and strategies.
Direct indexing utilises technology to develop a custom investment portfolio representing the composition of a market index.
Morningstar Indexes president Ron Bundy said: “Direct indexing is a powerful way to personalise investor portfolios and help drive the outcomes they seek for their unique situations.
“Morningstar is helping investors pursue those outcomes by making our high-quality indexes and wealth of independent data and insights available to independent advisors.”
In addition to its index offering, Morningstar is also providing independent research, asset allocation and portfolio insights, manager selection and technology solutions on WAGN’s platform.
WAGN co-founder John Phoenix said: “We are excited to align with Morningstar Indexes to address a gap in the wealth management industry.
“Together, we are helping advisors turbocharge growth, enhance efficiencies and unlock new possibilities for their clients and the wealth management industry as a whole.”
WAGN said it will conduct due diligence and identify growth-driven wealth firms with the right infrastructure to access direct indexing while delivering Unified Managed Accounts (UMAs), trading, rebalancing, reporting, and other back-office support.
It will offer advice and best practices to help firms who do not yet have the integrated solutions, technology and operating environment to benefit from the new offering.
As part of the tie-up, WealthShield, an OCIO firm catering to RIAs, is licensing indexes from Morningstar via WAGN to provide direct indexing to its clients.
South Florida-based MG&A Wealth, which advises over $950m of assets, will be the first wealth manager to benefit from the new platform.
The firm, through its partnership with LibertyFi, has implemented an integrated operating environment that can support direct indexing.