Since its acquisition by BlackRock a year ago, online investment adviser FutureAdvisor has inked partnerships with BBVA Compass and RBC Wealth Management. Recently, we learned that the San Francisco-based robo-adviser founded by CEO Bo Lu has added another major client to its roster: U.S. Bank Wealth Management.
“Digital advice … will play a larger role as the combination of digital and human advice, packaged appropriately together, continues to improve outcomes for both financial advisers and their clients,” Lu said.
FutureAdvisor is an online investment adviser that automatically reviews and manages investment holdings to optimize asset allocation, limit hidden fees, and improve tax efficiency. The platform provides regular portfolio rebalancing, tax-loss harvesting, and immediate and automatic investment of newly added cash. FutureAdvisor also gives clients access to professional licensed advisers and service specialists to ensure that investors get quick answers to their questions about investing and the FutureAdvisor platform. Clients can use the technology to plan for a variety of financial goals, and is free for those using the platform for retirement and college savings. For investment management, FutureAdvisor charges an annual fee of 0.5% of assets directly managed, with advice on managing 401(k) accounts available for free.
Mark Jordahl, president of wealth management at U.S. Bank, said FutureAdvisor’s technology would complement the work of its investment advisers and give investors greater confidence. “We are thrilled to be launching a new strategic partnership with FutureAdvisor to create an automated investing option that we believe will be highly valued by those who are in the process of growing as investors,” Jordahl said. U.S. Bank will use FutureAdvisor to build a variety of investment portfolios consisting of “cost-effective funds specifically designed to help clients work toward their goals.”
Founded in 2010 and based in San Francisco, California, FutureAdvisor demonstrated its technology at FinovateFall 2013. This summer, the company was featured in a report on automated digital wealth management from Finovate sponsor Financial Technology Partners (FTPartners), and profiled by Business Insider. FutureAdvisor picked up LPL Financial as a client in April, bringing its robo-adviser platform to the company’s 14,000 financial advisers. Prior to the company’s acquisition by BlackRock, FutureAdvisor had raised more than $21 million in funding.