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WisdomTree Invests $20M in AdvisorEngine to Expedite B2B

Zacks Equity Research

New York-based investment advisory services provider, WisdomTree Investments, Inc. WETF announced last week that it has made a strategic investment of $20 million in AdvisorEngine, formerly known as Vanare. The invested amount reflects a 36% equity interest in AdvisorEngine, a provider of end-to-end digital wealth management platform that enables individual customization of investment philosophies. This investment will drive innovation and advisory success at WisdomTree.

Additionally, both the companies entered into a strategic agreement under which WisdomTree’s asset allocation models will be offered through AdvisorEngine’s award- winning open architecture platform. Also, WisdomTree will actively make the platform available to its deep distribution network. This collaboration would facilitate advisors to better serve their clients in a post-DOL Fiduciary Rule environment and scale business as well. The Fiduciary rule is expected to be implemented in the U.S. in Apr 2017.

Further, AdvisorEngine’s change of name highlights the company’s vision to empower advisors through integrated technology across the full client spectrum. This gamut of clients includes high net-worth clients to lower balance relationships.

Per the CEO and President of WisdomTree, Jonathan Steinberg, “Forward-thinking financial institutions have an opportunity to thrive in this changing environment. AdvisorEngine’s expertise in B2B digital advice makes it a natural choice for these firms.”

Additionally, founder and CEO of AdvisorEngine, Rich Cancro, stated, “The financial investment and strategic relationship with WisdomTree will enhance our execution and allow us to grow as an independent, open architecture firm.”

Notably, AdvisorEngine was the first company to integrate private-label robo-advice within a full enterprise B2B digital wealth management technology platform. Also, the firm is a pioneer in digital wealth management technology and will continue to deepen advisors’ relationship with clients through an array of distinct product offerings.

WisdomTree currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Stocks that warrant a look in the same space include Stifel Financial Corp. SF and The Charles Schwab Corp. SCHW, each sporting a Zacks Rank #1. The Zacks Consensus Estimate for these two stocks for the current quarter moved up 1.6% to 63 cents per share and 2.9% to 35 cents per share, respectively, over the last 30 days.

Another stock worth considering is The Goldman Sachs Group, Inc. GS, which holds a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the stock for the current quarter moved up 3.3% to $4.42 per share over the last 30 days.

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