‘While these organizations may want exposure to the opportunities available in the private markets, it can be challenging to access leading private equity managers and invest with discipline and skill.’. Discover how you can offer clients and their employees life insurance that fits real-life needs. Boston-based HarbourVest had $68bn in assets under management at the end of 2019. Together, you can offer the right benefits to meet employer and employee needs. DeMaso pointed out that Vanguard previously called off a partnership with Hamilton Lane to offer a private equity fund in 2001, almost 20 years ago. Private equity adds unnecessary complexity.'. 'Compelling evidence': Roberts and Kavanaugh signal support for saving Obamacare. ‘We are entering the private equity market the Vanguard way—partnering with a world-class advisor to provide a high-quality offer,’ said Vanguard chief executive Tim Buckley. Create An Account. Our take: This is less about disrupting P/E which is prob not going to happen anytime soon, and much more about their Personal Advisory Service and upping their game there to compete w the big guys you need to have P/E access. Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. For Professional Investors. 'The bottom line, in my view, is that most investors don’t need private equity in their portfolios,' said Jeff DeMaso, director of research for Adviser Investments, in the Independent Adviser for Vanguard Investors newsletter. Feb. 5, 2020 9:24 AM ET | By: Liz Kiesche, SA News Editor Vanguard, known for its low-cost index funds, forges into private equity through a partnership with HarbourVest as it seeks higher … All Rights Reserved. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said this move will make Vanguard's Personal Advisory Services (PAS) more competitive. According to Chris Philips, head of Vanguard Institutional Advisory Services, Vanguard will leverage HarbourVest’s private markets expertise to bolster its portfolio construction and investment committee governance capabilities. Making the most of low interest rate environments, Repaying student loans especially stressful for these employees during pandemic, Health care workers worry for their financial future: TIAA. PAS is the real disrupter here. Vanguard, the money manager that used passive investing to up-end Wall Street’s legacy model for retirement investing, is getting active. VALLEY FORGE, PA and BOSTON, MA (February 5, 2020)—Vanguard and HarbourVest today announced a strategic partnership to provide qualified investors with access to private equity and the potential to earn higher returns and achieve increased diversification. We liked that we have had that much of an impact. Start key conversations with clients and listen to their answers, priorities and concerns. Your online account is ready and you will now have access to: Not registered yet? VALLEY FORGE, Pa. and BOSTON, Feb. 5, 2020 /PRNewswire/ -- Vanguard and HarbourVest today announced a strategic partnership to provide qualified investors with access to private equity … Valley Forge, Pa.-based Vanguard had $6.2trn in assets under management as of December 31, 2019. When not writing, he's pushing into some land or water. Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters. VANGUARD AND HARBOURVEST ANNOUNCE PRIVATE EQUITY PARTNERSHIP 5 February 2020 VALLEY FORGE, PA and BOSTON, MA (February 5, 2020)—Vanguard and HarbourVest today announced a strategic partnership to provide qualified investors with access to private equity and the potential to earn higher returns and achieve increased diversification. 4 FAQs as the ACA Supreme Court hearing kicks off, Workplace policies under the Biden administration: What to expect, Interest rates will eventually rise and when they do, retirement savers will want to be sure that they have diversified their portfolios. © 2016 Citywire. Balchunas also tweeted the following quote from Buckley, cited as coming from The Globe & Mail in March 2019: 'We have been really pleased with the price competition we have introduced in the mutual fund sphere. To get in touch with Citywire’s editorial staff email news@citywireusa.com. But the area that really needs to come down [in price] is advice.'. Search for news, funds, fund managers, sectors and asset classes. Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com, Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment. 'I often say that while investing isn’t easy, it doesn’t have to be complicated. Open Enrollment During COVID-19: Reducing Financial Stress with Benefits is Critical for Success. Vanguard teams with HarbourVest to advise DB sponsors’ private equity sleeve Why did the granddaddy of passive investing partner with a private equity giant? Exclusive discounts on BenefitsPRO.com and ALM events. Earlier this year, Vanguard received approval from a UK regulator to provide investment advice in the country, in the firm's latest step to expand its advice outside the US. The fund will initially be available to pensions, endowments and foundations through Vanguard … Sponsored by Transamerica Employee Benefits, Bringing Benefits to Life: Life Insurance and Living Benefit Riders. Discover how to help clients remove the financial barriers to proper care. "Concerning, and sadly ironic" that health care workers fear not being able to pay out-of-pocket medical expenses during retirement. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. Your article was successfully shared with the contacts you provided. By Nick Thornton | February 12, 2020 … In September 2019, Vanguard set out plans to launch a digital-only offering in the US that will provide financial planning and automated investing to retail clients and participants in employer-sponsored retirement plans. Copyright © 2020 ALM Media Properties, LLC. ‘Many institutional clients seek alpha sources not readily available in the public markets,’ said Philips. Employee health insurance: Will companies make changes under Biden? He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. PAS offers both robo and human advice. The fund will initially be available to pensions, endowments and foundations through Vanguard Institutional Advisory Services, though the firm plans to broaden access in the future. Sponsored by Nonstop Administration and Insurance Services, Inc. First-Dollar Coverage is Crucial: Why Your Clients Should Rethink Their Health Benefits. Vanguard has partnered with HarbourVest to enter the private equity market with the launch of a new strategy. Vanguard has partnered with HarbourVest to enter the private equity market with the launch of a new strategy. Vanguard plots next disruption to Canadian investing: Cutting the cost of what you pay for advice, Vanguard plans UK investment advice service, Breaking industry news delivered as it happens, Performance analysis based on our global database, Up to the minute reports on key people moves. ‘Private equity will complement our leading index and actively managed funds, as we seek to broaden access to this asset class and improve client outcomes.’. Some say it would have been impossible for them to have made their payments during the COVID-19 crisis without the CARES Act. Investors, however, would not only pay this fee to Vanguard, but would also be paying the underlying 1% to 3% annual fees for each private-equity fund the portfolio invested in, plus the 20% to 30% of profits, or so, that typically goes to the private equity fund… All Rights Reserved.