Eaton Vance leads a $40-million investment round in SigFig with an eye toward capturing some of its lightning to spark NextShares
For his millions, Eaton Vance's Tom Faust gets a seat at the SigFig table, which he hopes his firm can leverage
What a stupid investment decision on both sides of the aisle. To think there is any cross-selling opportunity (NextShares through SigFig) is an expression of pure hope; not a true strategy for success. No wonder Eaton Vance continues to lag the leaders in asset management.
I suppose this is how the game unfolds; second-tier robos partner with also rans in the traditional advisory space; kindly accepting their “hope” money and leaving the path wide open for someone visionary with a truly differentiated offering to go directly to the consumer again. (FWIW, the reason robl customer acquisition costs are so high is that to date they’re not really doing anything unique, or differentiated enough to lower their CAC!)
I think we’ll find that any pure mutual fund player (Eaton Vance, MFS, Putnam, etc.) that doesn’t have their feet already deeply in the ETF pool is in deep trouble – and they know it. They need to throw money around and hope some of it falls into things that work out. Second tier robos will gladly take your money.
Any mutual fund player with a solid ETF presence (perhaps Vanguard and Schwab) can sleep awhile longer.
This investment by Eaton Vance reaks of desperation on their side, and a hope of getting back in the game on the part of SigFig and Sha.
Wealthfront cedes to four years of investors clamoring for crypto by taking on expensive third-party vendor that Betterment rules out
The Redwood City, Calif., robo-advisor turned a hard 'no' into a soft 'yes' by dealing with Grayscale and its 200 basis-point-plus fees, which its robo rival in NYC -- also without a crypto path -- finds ludicrous.
August 14, 2021 at 2:20 AM
Wealthfront's unlikely tapping of Sheila Bair and Tom Curry signals likely push to gain a bank charter, analysts say
The Redwood City robo-advisor's addition of two renowned former chief banking regulators brings legitimacy and guidance that could lead to a margin-fattening bank charter and help solve the robo-advisor's problem of high client acquisition costs.
December 31, 2020 at 4:37 AM
With fears rising that robo-advisors can disrupt $2-trillion target date fund universe, NextCapital raises fresh $30 million and wins five big customers, but can its software spur widespread TDF adoption?
TDFs are cash cows and asset magnets but also dumb robots in an era of smarter ones and the Chicago-based outsourcer is promising answers -- most recently to Franklin Templeton
September 22, 2020 at 8:59 PM
Oisín's Bits: Wealthfront drops old mission statement, declares war on institutions and emphasizes banking future • Seeking Utah charter, Edward Jones may become largest bank in US by branch count • After Advent chief leaves, Black Diamond head steps up
Andy Rachleff cans the old 'democratizing' mission statement at his robo; The 14,200 one-man Ed Jones branches may become branch banks; Steve Leivent consolidates power at SS&C.
July 3, 2020 at 1:12 AM
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Top Executive: Andy Rachleff