Atlanta-based asset management giant Invesco Ltd. has acquired Jemstep Inc., a Los Altos, Calif.-based company that provides online technology for U.S. advisors, enabling them to compete with the growing ranks of robo-advisors.
The two companies announced the deal on Tuesday. Financial terms were not disclosed.
Jemstep, which was one of the first firms to focus on helping advisors provide online advice to their clients, will combine with its investment management expertise to deliver a comprehensive solution to assist financial advisors, Invesco says in the announcement.
“We believe investors are best served by partnering with a financial advisor to reach their unique investment goals,” says Martin Flanagan, president and CEO of Invesco, in a statement. “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.”
Jemstep aims to help advisors serve clients with a platform that enables investors to access advice online through advisor-selected asset allocations of both mutual funds and exchange-traded funds (ETFs). Invesco notes that the platform will also give advisors the ability to track their own progress, view client data in aggregate, enhance portfolio management offerings and services, and manage risk.
“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,” adds Peter Intraligi, Invesco’s head of distribution for North America. “We will deploy our industry-leading home office and field sales support in the U.S. to ensure that advisors realize the value of incorporating a digital solution into their practices.”
“Similar to Invesco’s objective of helping advisors provide the best solutions for clients, Jemstep was founded on the principle of helping advisors differentiate their offerings by maintaining competitiveness,” says Simon Roy, president of Jemstep. “This includes helping them grow their business by gaining access to new markets or expanding access to current ones while also helping them meet their clients’ needs.”