Wealth management platform AssetMark is set to acquire nearly $12bn in assets from Morningstar Wealth’s turnkey asset management platform (TAMP).
Morningstar Wealth is a division of independent investing insights firm Morningstar.
The latest move comes as part of a partnership between a fully owned subsidiary of AssetMark Financial and Morningstar Wealth.
AssetMark CEO Michael Kim said: “Morningstar has a rich heritage of providing comprehensive investment insights and services to advisors and financial professionals around the globe.
“This relationship represents best-in-class firms strategically aligning to provide innovative solutions and high-quality service to financial advisors and their clients.”
Through the acquisition, financial advisers and clients on Morningstar Wealth’s TAMP will gain access to AssetMark’s platform. The platform offers provides services, business consulting, adviser technology, and a curated portfolio of investment strategists.
In addition, financial advisers working with AssetMark will be able to utilise a broad array of model portfolios and separately managed accounts handled by the Morningstar Investment Management team.
The Morningstar Investment Management team has more than $290bn of assets under management and advisement across the world.
Morningstar Wealth will also join the AssetMark platform as a third-party strategist as well as continue to expand its lineup of investment services.
Morningstar Wealth president Daniel Needham said: “AssetMark has a long track record of providing financial advisors with the service, tools, and investments they need to build a thriving practice, and we look forward to making our models accessible to more advisors.
“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.”
According to AssetMark, the account migration process will be made seamless and will not need additional new client paperwork and clients’ performance histories to be maintained.
The boards of directors of both AssetMark and Morningstar have approved the deal.
Subject to regulatory approval, required consents, and other customary conditions, the transaction is anticipated to be completed in the second half of this year.
