The ‘Why’ Behind OneDigital’s New Wealth Management Partnerships

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OneDigital Investment Advisors has announced a collection of partnerships through which it intends to enhance its expansion into wealth management, financial planning and investment management for individuals and families of all ages and income levels.

OneDigital already provides financial planning services to the masses through retirement plans, but the expanded wealth management capabilities are aimed at allowing OneDigital to provide “simple yet customized” investment models to the mass affluent marketplace. According to a press release announcing the partnership, the firm will be able to provide specialized investment strategies and private alternatives to high-net-worth individuals.

The offering includes customized model solutions and separately managed accounts from investment managers including BlackRock, Day Hagan/Ned Davis Research, PIMCO, Avantis Investors and Newfound Research. The new approach is based on technology partnerships with Parametric and 55ip, and it features an end-to-end alternative investment solution from iCapital.

“It is our goal to increase access to personalized financial advice and better support people of all ages and incomes,” Vince Morris, president of retirement and wealth at OneDigital, said in the release. “This expanded offering prioritizes access to personalized advice and the level of support that individuals need to live their best life now and into the future.”

Speaking with PLANADVISER, Morris says OneDigital has built a strong relationship with many employers as a trusted retirement plan adviser—with the firm now covering more than a million employees. Thanks to the partnerships negotiated with the various institutional asset money managers, Morris says, OneDigital will be able to offer employees custom solutions specific to their financial situation.

“People want this type of advice through their employer,” Morris says. “And we have a mechanism to allow that employer to offer financial advice down through the employee ranks.”

OneDigital has developed a differentiated investment approach utilizing a proprietary asset allocation algorithm that aligns individuals with a blend of customized strategies through its partnering managers, the release says. This approach will be deployed directly to individuals as well as through financial engagement with corporate clients supporting the financial wellbeing of their employees. 

“Our people-first financial planning approach combines the ability to easily curate and monitor custom portfolios and blend the strategies provided by our partnering managers. Creating custom portfolios and aligning them with our client’s financial goals is the next generation of investment management,” Saumen Chattopadhyay, chief investment officer at OneDigital, said in the release. “We look beyond the individual’s risk level and time horizon through a planning process. Our relationships with leading managers and technology partners will allow for a new level of both simplicity and customization.”

Morris says the two main questions many American families have today are how they are going to pay for health care and whether they are saving enough for retirement.

“We think we can bring together a platform or offering in the marketplace that address more of a holistic financial approach to health care and health care needs and financials,” Morris says. “There’s a connectivity there in our belief system that says you can’t upgrade healthcare if you don’t have financial stability, and if you don’t have financial stability, you can’t upgrade health care. Those two things are interlinked, and that’s what we are solving for.”