Vestmark, a prominent provider of wealth management technology and services, has been chosen by Vanguard to power Vanguard Custom Model Portfolios, a new offering specifically for registered investment advisors (RIAs). Under this collaboration, Vestmark will provide the necessary trading, tax-management, and advisor-service infrastructure to enable wealth managers to implement more personalized portfolios for their clients at scale.

Vanguard Custom Model Portfolios allow advisors to tailor existing Vanguard multi-asset and single-asset-class models. This customization addresses individual client needs related to investment products, asset classes, and management approaches, while maintaining Vanguard’s foundational principles of low cost and disciplined investing.

Vestmark’s platform is designed to support open-architecture portfolios, capable of integrating mutual funds, exchange-traded funds, separately managed accounts, direct indexing strategies, and alternative investments within a single managed account structure. The partnership entails Vestmark managing the trading, rebalancing, tax-aware transitions, and continuous tax management required to operate these portfolios efficiently at high volumes.

RIAs utilizing this new offering will also gain access to a white-labeled digital portal. This portal provides functionality for monitoring account performance, submitting service requests, creating client proposals, and conducting tax-transition analysis. Vestmark has a significant presence in the industry, working with six of the ten largest managed account program providers. Its technology supports over $2 trillion in assets, more than five million investor accounts, and serves over 72,000 financial advisors with capabilities spanning unified managed accounts, direct indexing, tax optimization, model portfolio distribution, and fixed income management.

This partnership aligns with Vanguard’s broader strategy to expand access to customizable model portfolios across the RIA channel, leveraging Vestmark’s robust custodial platform integrations and proven expertise in supporting large-scale managed account programs.

Karl Roessner, Chief Executive Officer at Vestmark, stated, “Vanguard has built its reputation around disciplined investing, low costs and long-term investor outcomes. By combining that investment expertise with Vestmark’s portfolio-management, trading and tax-management infrastructure, we can help RIAs deliver greater personalization without adding operational complexity. We are proud to support Vanguard as they bring this new offering to the RIA market.”

Eve Cout, Head of Advisor Solutions, Financial Advisor Services at Vanguard, commented, “Advisors increasingly expect access to investment solutions through scalable technology and intuitive workflows. By pairing Vanguard Custom Model Portfolios with Vestmark’s established implementation platform, we can help RIAs customize and manage Vanguard portfolios efficiently while retaining investment rigor and control over important investment decisions.”