Asset manager Invesco has expanded its services into the robo-advisor space with the acquisition of Jemstep, a digital platform specialising in providing online tailored investment advice to financial advisors.
Investors using Jemstep will complete a personal questionnaire regarding their investment goals, risk tolerance and time frame. The robo-advisor will then use an algorithm to form portfolios based on each client’s specific requirements.
The platform offers a large suite of flexible technology solutions, allowing advisors to easily integrate the platform into existing systems. The service will harness Invesco’s wealth of asset management experience and will offer portfolio’s based on a wide range of mutual funds and ETFs. While most similar technologies only offer market cap-weighted approaches to portfolio construction, Jemstep will provide alternative solutions such as factor-weighting.
Martin L. Flanagan, CEO and President of Invesco.
“We believe investors are best served by partnering with a financial advisor to reach their unique investment goals,” said Martin L. Flanagan, CEO and President of Invesco. “We have a deep history of providing advisors with the tools they need to help their clients achieve their desired investment outcomes through a broad range of high conviction active and factor-based investment strategies. As we continually look to enhance our partnerships with advisors, we recognize that digital solutions can expand their options for meeting client needs. Jemstep’s proven platform enhances our ability to help advisors grow their business and by seeking to deliver superior client experiences in a rapidly evolving market environment.”
Invesco has stated its commitment to helping home offices and advisors in the US to fully utilise the benefits that Jemstep can deliver to their clients. Invesco’s sales and service team will assist advisors with the integration of the platform to their services and advise on how Jemstep can help track advisor progress, view client data in aggregate, enhance portfolio management offerings and services, and manage risk.
Peter Intraligi, Head of Distribution for North America at Invesco, commented: “The Invesco Jemstep combination is unique in that it will unite world-class investment management capabilities, Silicon Valley technology and expert human advice to deliver a comprehensive digital solution. We will deploy our industry-leading home office and field sales support in the US to ensure that advisors realize the value of incorporating a digital solution into their practices.”