BlackRock Inks GeoWealth Pact for Alternatives Access

BlackRock Inks GeoWealth Pact for Alternatives Access

Partnership aims to provide advisors with access to sophisticated customized portfolios.

Jeff_Benjamin
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Wealth Management Editor
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Reviewed by: etf.com Staff
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Edited by: Ron Day

BlackRock Inc. is joining with financial technology firm GeoWealth to provide access to customized model portfolios that include private investments alongside mutual funds and ETFs, a recognition of investors' increasingly sophisticated relationship with financial advisors. 

Inside BlackRock’s $115 billion model portfolio business, there is $31 billion in custom portfolios, representing the fastest growing area of model portfolios, according to Eve Cout, head of portfolio design and solutions within the U.S. Wealth Advisory business at BlackRock.

“What we’ve uncovered is that the models we’ve built are great for mass affluent clients, but as advisors engage with high-net-worth and ultra-high-net-worth-clients, they increasingly seek more diversified, personalized and tax-efficient strategies,” she said.

Cout said model portfolios today, which are increasingly anchored to exchange-traded funds, are growing fast. They represent approximately $4.2 trillion, which is nearly a quarter of the total investable wealth market, she said.

“Model portfolio assets are projected to reach nearly $10 trillion over the next five years,” she added.

The growth of model portfolios, even with the addition of private investments and other alternatives, is a key driver in the growth the ETF industry. This is because ETFs are typically the low-cost foundation of model portfolios offered on turnkey asset management platforms like Chicago-based GeoWealth.

The GeoWealth platform has more than $28 billion invested through more than 180,000 accounts and nearly 200 financial advisors.

New York-based BlackRock, the world’s largest asset manager, has multiple relationships with model portfolio platforms that are accessed by financial advisors. But the GeoWealth partnership is designed to offer customizable access to private markets investments starting in September.

By early next year, Cout said the GeoWealth platform will also provide access to direct indexing and separately managed accounts inside the various model portfolios.

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.


Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.


Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.