Wealth management platform provider AssetMark Financial Holdings Inc. is entering into a strategic alliance with the Morningstar Wealth Turnkey Asset Management Platform (TAMP), reports Think Advisor.
As part of the transaction, which was approved by the board of directors of both companies, AssetMark will acquire roughly $12 billion in assets from Morningstar Wealth
The two companies said the alliance is expected to be closed in the second half of 2024, subject to regulatory approvals.
AssetMark said its platform, offering top-tier service, advisor technology, business consulting and a group of investment strategists, will be accessible to financial advisors and clients on Morningstar Wealth’s TAMP.
“This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients,” said AssetMark CEO Michael Kim.
As part of the arrangement, AssetMark’s 9,200 financial advisors will gain access to a broad range of model portfolios and separately managed accounts managed by the investment management team of Morningstar, which has over $290 billion of assets under advisement worldwide. Morningstar Wealth will integrate into AssetMark’s platform as a third-party strategist and continue broadening its investment services range.
“We are aligning our efforts with a clear vision to combine the strengths of our unique capabilities, enabling the advisors we support to serve investors more effectively,” said Daniel Needham, president of Morningstar Wealth.
The account migration process is not expected to require additional new paperwork involving clients, and their performance histories will be maintained.
“This is going to be relatively easy for advisors and clients,” said Needham. “Our focus is to make it as friction-free as possible and we’ll continue to manage our platform and deliver for our clients right up to the transition.”
AssetMark Financial Holdings was founded in 1996 and its platform serves over 257,000 households. As of March 31, the company had $116.9 billion in platform assets.
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