Altruist is unveiling a second group of model providers, adding to the growing model marketplace it launched in February. Models from BlackRock, Redwood Investment Management and State Street Global Advisors will be listed alongside existing models from DFA, Vanguard and Altruist’s own free Simplicity Series, according to an announcement. The models will be integrated into Altruist’s platform, where advisors can open and fund accounts, invest, manage, report and bill through a single piece of software.
BlackRock will have the distinction of offering the first ESG models within Altruist’s model marketplace, according to Michael Lane, head of iShares U.S. Wealth Advisory division. Redwood will be showcasing its “Engineered Risk-Budgeted” models and State Street will list its "Active Asset Allocation ETF" portfolios. All three additions are part of Altruist CEO Jason Wenk’s push to have his firm be the provider of “artisan portfolios.”
Advisors have been placing more demands on custodians, and Altruist could be responding to those expectations, said Joel Bruckenstein, an advisor technology consultant and president of Technology Tools for Today, when Altruist first announced its marketplace earlier this year. The firm is “slowly trying to meet the needs and demands of advisors—and listening to advisors—and trying to build out according to what they're being told,” he added at the time.
Altruist is not alone in responding to advisors. Pershing recently revealed plans to build a multicustodial oversight tool that will be available to advisors whether they use the clearing and custody firm or not. Charles Schwab has plans to launch a long-promised digital onboarding tool this month. Even Goldman Sachs wants to show advisors it can meet their needs for custodian and clearing technology.
The additions to its marketplace are about providing Altruist users with better variety and more services, said Wenk. "Offering a selection of high-quality boutique models empowers advisors to focus on giving their clients a better experience with money,” he said, in a statement. “The continued growth of our Model Marketplace is exciting—we're offering more choice and flexibility to advisors, including sustainability models. We're grateful to integrate with leading firms as we continue making financial advice better and more accessible."
While the Simplicity Series is available free of charge, other models vary in pricing and can cost up to 15 basis points, annually, according to a company spokesperson. Altruist doesn’t charge for the first 100 accounts advisors have on the platform, with subsequent accounts costing $1 per account per month.
