Vestmark, NDEX and Orion Add Portfolio, Data and Transition Tools for RIAs

Three technology moves give registered investment advisors new ways to build tailored portfolios, reconcile data across custodians and move advisors’ client accounts onto a new platform. The common thread is operational capacity: as firms add clients, custodians and recruits, the systems behind portfolio management and onboarding can become a constraint on growth.

Vestmark is adding First Trust Portfolios strategies to its model portfolio marketplace. NDEX Systems is extending its work with Schwab Advisor Services through data and wealth management products. Orion is bringing parts of Forms Logic’s transition software into its advisor onboarding process. Each arrangement addresses a different stage of an advisory firm’s operations, so the practical value will depend on how well the tools fit with the systems a firm already uses.

Vestmark adds First Trust strategies to model tools

Vestmark’s offering gives RIAs a white-labeled way to create and manage model portfolios using First Trust strategies. Advisors can adjust the models for individual clients, while Vestmark’s platform supports trading, tax-aware moves out of legacy holdings and ongoing tax management. The aim is to combine an asset manager’s investment strategies with room for advisors to tailor portfolios.

The launch will include exchange-traded funds, mutual funds and interval funds. Interval funds are semiliquid closed-end vehicles that repurchase shares at set intervals instead of offering daily liquidity. Their inclusion gives advisors another type of investment vehicle to consider within the models, while the repurchase schedule is a feature firms need to account for when matching a portfolio to client needs.

The First Trust arrangement follows Vestmark’s recent work with other asset managers on advisor-built portfolios, including its collaboration with Allspring. The company says its technology supports more than $2 trillion in assets, 5.5 million investor accounts and over 72,000 advisors. It is also used by six of the 10 largest managed account program providers.

Those figures indicate the scale at which Vestmark’s infrastructure operates, though they don’t establish how many firms will adopt the First Trust models or how much client money will use them. The key question for advisors is whether the ability to customize models and manage tax-sensitive transitions reduces work without limiting the portfolio choices they need for individual clients.

“RIAs increasingly want access to the investment expertise of leading asset managers without giving up the flexibility to tailor portfolios around individual client needs,” said Rob Battista, executive vice president of advisory solutions at Vestmark. Vestmark has also been positioning itself for a larger role in the advisory technology market, as discussed in coverage of its plans following the Envestnet deal.

NDEX focuses on reconciled data across systems

NDEX Systems, based in Montreal, is expanding its work with Schwab Advisor Services through two products that firms can license separately or together. Data Bridge brings together custodial feeds and other financial records across custodians and asset types, then normalizes and reconciles the information for use in existing customer relationship management, reporting, investment accounting and trading systems.

That role is distinct from replacing a firm’s software stack. Data Bridge is designed to make information usable across tools that may receive records in different formats. For an RIA working with multiple custodians, consistent data can support more reliable reporting and workflows, but the payoff depends on the quality of incoming records and the connections available to the firm.

NDEX’s F-Engine platform uses the reconciled data for portfolio management, performance reporting and advisor workflows. It can also report on alternative and off-book assets, which may sit outside the standard custodial feeds used for other holdings. Firms can license particular F-Engine functions rather than taking the full platform, giving them a way to select capabilities around their existing setup.

NDEX already connects with Schwab for automated daily file ingestion, single sign-on, client onboarding and trading. The companies are developing further integrations. The expansion comes as Schwab’s custodial business for RIAs grows: chief executive Rick Wurster told analysts on the company’s most recent earnings call that Schwab serves more than 16,000 advisory firms. Recent coverage has also examined that continued growth and Schwab’s message to RIAs about its wealth arm.

“Custodial access is only the beginning,” said Laurent Bensemana, chief executive of NDEX. “RIAs need data they can trust across the systems they use every day.” For firms, the measure will be whether reconciliation works across their particular mix of custodians and applications, including assets that are not held in standard accounts.

Orion embeds Forms Logic transition steps

Orion is integrating components of Forms Logic’s Migrator software into the process for transferring advisors’ books of business onto its platform. Migrator organizes transition data, identifies and pre-fills required paperwork, automates workflows and tracks progress. Its six-step sequence covers advisor introduction, contract completion, data capture, workflow creation, affiliation day and execution of the move.

Transitions can involve large numbers of accounts, several custodians and extensive documentation. When information is missing or forms are incomplete, teams may face repeated follow-ups that slow the move. Migrator’s structured process is intended to show where each transition stands and help teams manage the paperwork required at each stage.

Forms Logic, based in Wheaton, Illinois, also sells Navigator, an onboarding platform designed to reduce “not in good order” submissions. Those submissions can trigger time-consuming exchanges with custodians when paperwork or details need correction. Orion’s integration extends its recent efforts to speed onboarding and transitions, described in coverage of its RFG moves.

“Advisor transitions are among the most operationally complex events in wealth management, often involving thousands of accounts, multiple custodians and extensive documentation,” said Rick Burgess, chief executive of Forms Logic. Orion chief operating officer Arun Anur said, “By streamlining the onboarding process, advisors can spend more time supporting client relationships and integrating into their new firm.”

The three moves put attention on different pressure points: investment customization at Vestmark, data coordination at NDEX and account transitions at Orion. Their impact will turn on adoption and day-to-day execution, especially how well each tool connects with firms’ existing workflows. For growing RIAs, the immediate test is whether these additions reduce operational friction while preserving the flexibility needed to serve clients.