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And now #AdvisorTech news that another Model Marketplace comes to an end, as Principal announces @RobustWealth is being wound down 3 years after acquiring it... (1/?) #FinTech
The Robust Wealth acquisition by Principal in 2018 was one of multiple asset managers acquisitions of "robo-advisor-for-advisors" platforms, along w/ WisdomTree buying AdvisorEngine, after Invesco acquiring JemStep, after Blackrock acquired FutureAdvisor. kitces.com/blog/model-mar…
The strategy was pretty straightforward - if advisors automate trading & rebalancing of their models through 'robo' tools, then asset managers can populate the marketplace of models with models that include their own mutual funds/ETFs to boost their distribution.
Interesting #AdvisorTech news this morning - @FTI_US is buying @AdvisorEngine (and @JunxureCRM) from @WisdomTreeETFs. Yet another asset manager in the 'robo' business, along with Invesco's Jemstep & Blackrock's FutureAdvisor. financial-planning.com/news/franklin-… via @ryanWneal #FinTech
The news of AdvisorEngine sale isn't entirely surprising. As discussed in our February #AdvisorTech coverage, WisdomTree signaled in its Q4 Earnings Call that it anticipated an exit from AdvisorEngine (with a significant write-down).
Terms of the Franklin Templeton acquisition weren't disclosed, but WisdomTree previously indicated an expected $22M - $30M writedown of its $58M stake from successive @AdvisorEngine investments.
Mega news this week is prospective merger of Schwab & Ameritrade. Getting a lot of questions, so wanted to share thoughts on what #Schwabitrade may mean for advisor community & from advisor's perspective...
Charles Schwab Holds Talks to Buy TD Ameritrade on.wsj.com/35mZF0v
Charles Schwab Holds Talks to Buy TD Ameritrade on.wsj.com/35mZF0v
Schwab was/is already the #1 player in the RIA custody space, having effectively created the independent RIA platform by launching Schwab Advisor Services in 1993. TD Ameritrade was their longest standing competitor, but much smaller (relatively speaking) in the RIA channel.
RIA custodians hold their cards close to their vest, but the estimate is that Schwab serves 7,000+ RIAs while TD Ameritrade serves about 6,000 of them. However, Schwab has almost $2T in RIA assets compared to TD's ~$600M.
