Advyzon, one of Financial planning best fintechs to work foris the latest wealth technology company to offer outsourced investment management services.
The company – which provides an all-in-one technology solution including CRM, portfolio management and reporting to approximately 1,000 financial advisors – announced the launch of Advyzon Investment Management (AIM), a key asset management program in hand for financial advisors.
Advyzon’s customers and prospects were increasingly demanding a more unified experience between investments and technology, according to John Mackowiak, Advyzon’s director of business development and Financial planning donor. So rather than partnering with a third-party investment firm, as other tech vendors have done to deploy a TAMP, the company instead built a new one on top of its existing technology.
Unless a company outsources all client portfolios to a third party, it often encounters issues between its technology and that of TAMPs, said Hailin Li, founder and CEO of Advyzon. By building everything from a single source code, Advyzon believes it can avoid this problem and allow advisors to retain control of certain investments while outsourcing the rest.
“We can deliver a fully integrated user experience because it’s a natural extension of what we do,” Li said.
It is this digital experience and the fact that AIM is independent of any asset manager that Advyzon hopes will help its new TAMP stand out and compete for assets in an increasingly crowded market.
“We’re disassociated from promoting individual investments or anything like that,” said Lee Andreatta, CEO of Advyzon Investment Management. “We are not going down the path of offering investment products, and we are not owned by an investment product manufacturer.”
In addition to Andreatta, AIM is led by chief investment officer Brian Huckstep, who previously spent 15 years at Morningstar as a senior portfolio manager and head of US asset allocation, and the director of exploitation Meghan Holmes, who recently worked with advisors affiliated with Charles Schwab. Advisor Services’ largest corporate clients.
AIM plans to leverage the team’s collective experience to deliver a range of proprietary model portfolios including mutual funds and active/passive ETFs, an ESG model, a tax-sensitive only ETF solution, an alternative model and an indexing version, Andreatta said. Advyzon plans to eventually create a model marketplace to include third-party strategies.
Other wealth technology companies have made similar pivots to outsourced asset management. Orion Advisor Solutions has a long history of offering investment management services through CLS Investments, acquired full TAMP capabilities with its purchase of FTJ FundChoice in 2018, and bolstered its offering with the 2020 merger with Brinker Capital. More recently, InvestCloud has taken the leap after buying and merging with Tegra118, formerly Fiserv’s wealth management business.
“Many companies like Advyzon are adding TAMP functionality. It seems to me that advisors prefer a single solution for investment management and performance reporting/portfolio management,” said Joel Bruckenstein, Technology Tools for Today (T3) conference producer.
Although Advyzon isn’t as well-known as some of the competing high-tech companies, it appears to be growing rapidly, Bruckenstein said. In its latest technology survey, Advyzon received the highest advisor satisfaction rankings among all-in-one technologies, as well as in the portfolio management and reporting categories. The technology has also been honored by XYPN co-founder Michael Kitces as software that advisors like to use.
And while others may have more extensive offerings, some companies don’t need everything TAMPs provide, opening the door to new entrants.
“For those who have needs met by Advyzon, who want a vendor with high satisfaction rankings, Advyzon is a good choice,” Bruckenstein said.