Vanguard's deal with Blackstone follows its bleak, almost black, market prognosis • SSGA launches another 'Apollo' product, sans Apollo brand • SEC OKs 'green' exchange • Senators call out Trump 'fraud' in letter to new SEC chair

Vanguard Group's blockbuster Blackstone initiative, announced Tuesday (April 15), may have had a second catalyst -- a gloomy, in-house economic outlook that includes caveats about the temptations of buying depressed public market shares. 

The Malvern, Pa., manager of $10.4 trillion made clear in an Apr. 8 update that the economy is “dancing with recession,” and post-correction share prices should not be viewed as an invitation to buy stocks as long as the economy flirts with “stall speed.”

“Don’t chase the markets,” says Vanguard's Chief Economist Joe Davis. “In times like these, they’re wild and unpredictable.”

But Blackstone and Vanguard will both chase co-produced “private" investments that include hedge funds. In theory, they can thrive in “wild” markets by going short or at least pursuing “uncorrelated” investments. See: Vanguard and Blackstone disclose joint 'initiative' to bring alts to mass investors 

Blackstone delivered $62 billion in inflows in the first quarter. It also raised $11 billion in private wealth assets, up about 40% year-over-year to its highest level in nearly three years. 

Still, Vanguard has also made a move to shore up a safer haven for fresh investor cash – cash itself.

It added a new director, Eric Edstrom, to “lead” its cash management programs. Edstrom, who was appointed in late March, was managing director, deposits and payments products, at Charles Schwab from 2016 to 2019.

Money market fund levels remain at record levels, clocking in at more than $7 trillion, according to the latest data from the Investment Company Institute.

Apollo takes back seat on new SSGA private markets TDF after SEC kerfluffle over Alts                                                                      

State Street Global Advisors (SSGA) also has a new private markets dance partner -- Apollo, a provider of alternative asset management and retirement solutions.

It has a new product too, but the Apollo brand isn't part of this Tango, after similar branding inflamed federal regulators. See: State Street -- under protest -- caves to SEC pressure to nix 'misleading' 'Apollo' name from its freshly minted alts ETF, one of many issues cited in stern regulatory letter

The firm's new Target Retirement IndexPlus Strategy, TDF, will mix SSGA passive holdings (90%) and an Apollo-managed pool of alts (10%). See: Apollo partners with State Street Global Advisors for ultimate moonshot.

The old one, PRIV ETF, isn't likely the catalyst for the new one because it has yet to attract more than a handful of assets.

As of Apr. 14, RIV manages $54.23 million – down from $54.86 million in mid-March – most of which is seed funding. 

Feds sign off on new ESG stock exchange, set for 2026

The Securities and Exchange Commission, SEC, is giving ESG a green new deal.

The federal regulatory agency on Apr. 14 approved a new ‘environmental, social, and governance’ stock exchange.

The amended application covers the anticipated 2026 launch of the ESG-friendly Green Impact Exchange (GIX). See: RIAs fear broaching ESG topics with clients amid blowback, but 'do-the-right-thing' investments are still big business, Cerulli shows.

GIX CEO and co-founder Dan Labovitz gave the SEC kudos for playing ball, despite being asked for a minor redo.

“We are grateful to the SEC Commissioners and staff for their thoughtful engagement throughout the application process, and their support for market-driven innovations that will improve capital formation,” he said.  

New SEC director shifts focus to traditional securities crimes; no word on Trump fraud allegations probe  

The US Senate just confirmed Paul Atkins as the new chair of the Securities and Exchange Commission (SEC). 

Atkins says he “will move away from what some perceive as ‘regulation by enforcement’ … in favor of a focus on more traditional fraud actions, such as insider trading and market manipulation,” according to analysis from New York City white-shoe law firm Proskauer Rose.

He will also have to decide whether to investigate the Trump administration, after six Senators* accused the president of “unconscionable” market manipulation and fraud in an Apr. 11 letter. See: Chuck Schwab stands at Trump's side (literally) and wins President's praise for supporting policies amid tariff fallout, while Schwab's chief investment strategist raises red flags.

Atkins, who served six years as an SEC commissioner under the Bush administration, will replace acting chair Mark Uyeda.                                      

Separately, the Department of Justice, DOJ, is also scrapping its cryptocurrency crime unit to end “regulatory weaponization against digital assets,” said Deputy Attorney General Todd Blanche, in an Apr. 7 memo. What weapon investors have to counter crypto fraud is less clear.   

InvestCloud's new COO will focus on mixing public, private assets in one account

InvestCloud has a new way to compete with Envestnet.

The SMA platform provider has hired a new chief operating officer for its legacy APL portfolio management software. 

Josh Mayer spent just over 24 years at Envestnet, including a 10-year stint as the outsourcer's chief operating officer.

At InvestCloud, he will focus on getting the company's bid to mix private and public assets in one "unified" account off the ground. See: InvestCloud is divulging a reimagined business model where alts are the main course                           

Mark Tibergien protégé joins Opal Wealth Advisors

A New York City RIA nabbed a big-league executive of its own on Apr. 15.

Opal Wealth Advisors, which manages $547.8 million, has hired one-time Mark Tibergien protégé, and ex-Goldman Sachs RIA custody executive, Kayla Kennelly, as its new chief growth officer. See: Facet hires Mark Tibergien's reverse mentor.

Direct-indexing assets close in on $1 trillion, but RIAs are largely sitting on the sidelines

Domestic direct-indexing (DI) assets are fast closing in on $1 trillion, but RIAs aren't interested, according to an Apr. 10 report from Boston consultancy Cerulli Associates.

“DI could easily surpass $1 trillion ... [but many RIAs] don't think they have a [DI] problem to solve,” says Scott Smith, senior director of advice relationships at Cerulli, in an email.

Just 5.7% of RIAs use the separately managed accounts that support DI, while 15% of wirehouse reps rely on them, Cerulli data shows.

An astounding 12% of advisors do not even know what direct indexing is, the Cerulli report says.

Veteran exec launches planning software firm

Former TD Ameritrade, Altruist, and LPL executive Pete Dorsey has launched Wing Financial, a financial planning software company.

 A “stealth” run that landed “thousands” of users of its “AI-generated” planning questionnaire prompted the move. See: Pete Dorsey among 1,000 staffers cut by Schwab, post TDA merger.

SMArtX finishes upgrade of unified managed accounts software

SMArtX is betting two heads are better than one in the minds of RIAs and TAMPs using its software to administer their bond portfolios.

The West Palm Beach, Fla., TAMP and outsourcer has finished an upgrade of its unified managed accounts software, so multiple investment managers can manage discrete “sleeves” of fixed-income investment in one taxable account, according to an Apr. 15 release.

* The signatories of the letter to Paul Atkins include Senators Elizabeth Warren, Charles Schumer, Mark Kelly, Ruben Gallego, Adam Schiff, and Ron Wyden.