Vestmark will manage these SMA strategies based on three new indices created by S&P Dow Jones Indices, along with three longstanding S&P indices
WAKEFIELD, Mass. – Jan. 25, 2023 – Vestmark, Inc., a leading provider of wealth management software and services, today announced that it is launching six direct-index, separately managed account (SMA) strategies, called Focused Index Portfolios, which are available through its Vestmark Manager Marketplace (VMM). Vestmark is collaborating with S&P Dow Jones Indices and licensing select equity benchmarks from the global index provider.
Of the six new SMA strategies, three are based on new, custom indices from S&P Dow Jones Indices that select constituents from the large-cap S&P 500® Index and the S&P 500® Catholic Values Index.
Each index is constructed to measure the performance of a subset of securities from an underlying index. Constituents are selected and weighted to reflect the Global Industry Classification Standard (GICS®) Industry Group coverage and weighting of the underlying index.
SMA strategies based on these new indices are currently only available through Vestmark. They are:
Additionally, Vestmark is launching three SMA strategies based on longstanding indices from S&P Dow Jones Indices that provide insight on specific segments of the market, including dividend-payers, ESG, and international developed markets. These are:
“We are excited to create these index-based SMA strategies designed to be offered at lower minimums in order to open this type of approach to a broader range of investors,” said Robert Battista, Senior Vice President & Managing Director of Vestmark Advisory Solutions. “With SMAs, investors can enjoy tax benefits that aren’t available through pooled products such as mutual funds and ETFs, and financial advisors can work with investors to select strategies to best fit their values and portfolio objectives, efficiently bringing personalization to the client relationship while also helping to improve overall investment outcomes for more investors.”
Building an SMA strategy based on a focused index allows investors to gain exposure to a broad-based market segment without having to hold every security in the broad index, making them ideal for investors with lower investment minimums or those who want a simpler portfolio strategy.
The six Focused Index Portfolios available through Vestmark are being offered with investment minimums as low as $100,000, allowing investors broader exposure to areas of interest that were previously less easily accessible, even for high-net-worth investors. The strategies also enable advisors to choose certain stock tilts – for example, they can provide an income tilt in Vestmark’s strategy based on the Dow Jones U.S. Dividend 100 Index, which comprises large-cap stocks.
“As the world’s leading index provider, S&P Dow Jones Indices is committed to offering market participants with transparent data and information so they can make confident, informed solutions,” said Bruce Schachne, S&P Dow Jones Indices Chief Commercial Officer. “In creating these indices, we’re proud to offer insights on new segments of the market and expand the many benefits of index-based investing to those interested in direct indexing solutions.”
Focused Index Portfolios typically invest directly in an optimized subset of securities that seeks to track the performance of the designated index by attempting to mimic the characteristics of the designated index, such as the designated index’s exposure and risk characteristics. Focused Index Portfolios invest both in securities included in the designated index and securities that are not included in the designated index. The performance of a Portfolio will not be the same as the selected index for a number of reasons; indices typically have far more positions than a Focused Index Portfolio, which can mean lower volatility, and indices do not have contributions and withdrawals. Indices are unmanaged and it is not possible to invest directly in an index. Investment strategies that seek to enhance after-tax performance may be unable to fully realize strategic gains or harvest losses due to various factors. Market conditions may limit the ability to generate tax losses. Please consult our full disclosure document for a discussion of risks related to Focused Index Portfolios and other offerings. This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only.
The S&P 500 Index, the S&P 500 Catholic Values, S&P 500 Catholic Values Focused 100, S&P 500 ESG Elite, S&P Developed Markets 100 ADR and the Dow Jones U.S. Dividend 100 Indices are products of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by Vestmark Inc. S&P®, S&P 500®, US 500, and The 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Vestmark. Vestmark’s VAST® Portfolios are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.
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Headquartered in Wakefield, Mass. and founded in 2001, Vestmark is a leading provider of portfolio management solutions and outsourced services for financial institutions and their advisors, enabling them to efficiently manage customized client portfolios through an innovative technology platform. Supporting over $1.5 trillion in assets and 5.5 million accounts, Vestmark is a partner to some of the largest and most respected wealth management firms. For more information about Vestmark’s solutions, call (781) 224-3640 or visit www.vestmark.com.
Elizabeth Shim
Haven Tower
(424) 317-4861
eshim@haventower.com
