Demand for Direct Indexing Drives Democratization of Custom Index SMAs
FOSTER CITY, Calif. and RICHMOND, Va. and MILWAUKEE, Jan. 11, 2022 /PRNewswire/ — Viewing direct indexing as the next disruptive technology in the investment industry, RiverFront Investment Holdings Group, LLC (“RiverFront Holdings”), the holding company for RiverFront Investment Group (“RiverFront”), and Baird announced today their purchase of a minority ownership interest as strategic investment partners in GAMMA Investing, LLC (“GAMMA”). GAMMA is an independent, woman-owned investment firm with a mission of democratizing access to custom index separately managed accounts (SMAs), making them broadly available to financial advisors at a reasonable cost.
RiverFront Investment Group and Strategas Asset Management are pleased to announce the launch of the RiverFront Strategas Policy Opportunities Portfolio, now available in the RiverFront suite of investment solutions.
direct indexing is an important piece of the investment management ecosystem for the long-term
GAMMA Investing was founded in 2020 by Lorraine Wang, an industry veteran with a proven track record in growing a global ETF franchise and leading the intelligent ETF evolution for the past two decades. The firm offers a unique custom index SMA platform enabling advisors to easily and quickly access a broad array of cost-effective custom index solutions. “Our investment in GAMMA demonstrates our belief that direct indexing is an important piece of the investment management ecosystem for the long-term,” said RiverFront CEO Pete Quinn. “Partnering with an industry veteran like Lorraine allows us to participate in the projected growth of direct indexing while allowing our investment team to stay focused on managing our existing solutions.”
“Lorraine has a well-established reputation, and we are pleased to support her in this venture,” said Steve Booth, Baird Chairman, President & CEO. “Her team’s client-focused approach is aligned with ours, and this investment enables us to further expand the high-quality solutions we make available to our financial advisors and their clients.”
Custom index SMAs, also known as direct indexing, are separately managed accounts investing in a bespoke portfolio of securities that track the performance of an index. The SMAs allow for customization based on an investor’s goals, social values and tax management objectives. GAMMA offers advisors a nimble, flexible solution that is easily customized to fit investor needs with expertise beyond equities in income securities and defined outcome strategies.
“Our custom index SMA capabilities empower advisors to provide their clients with highly personalized index solutions en masse and an opportunity to potentially increase their after-tax wealth”, said <…….