Adhesion arms WealthADV with Vestmark technology

Thomas Coyle

3 February 2009

Wealth-platform provider increases customization capabilities for its UMAs. Adhesion Wealth Advisor Solutions is using Vestmark's web-based Managed Accounts Platform (VMAP) as the overlay engine of its WealthADV unified managed account (UMA) program. Adhesion had been using optimization technology that CheckFree (now part of Fiserv) acquired when it bought Upstream Technologies in 2007.

UMAs are single-account investment products that feature combinations of separately managed accounts (SMAs), mutual funds and ETFs. Overlay management has to do with account-level rebalancing, restrictions, cash flows, and, where relevant, tax-liability management.

"Vestmark provides much more specificity for control at the sleeve level," says Adhesion's president and CEO Michael Stier. "It's the kind of service that combines great high-level oversight and the ability to adjust programs and portfolios to meet the client's specific needs."

Multi-custodian

Barrett Ayers, Adhesion's head of overlay management goes further. "Other technology options paled in comparison with Vestmark's sophisticated tax-aware, multi-sleeve rebalancing capabilities coupled with advanced trading, cash handling, and dynamic rule-based workflow capabilities," he says.

In addition to manager due diligence and access and overlay management, Charlotte, N.C.-based Adhesion provides back-office functionalities and performance reporting.

"Adhesion's WealthADV UMA program offers comprehensive multi-manager as the leader in the middle market trust bank, broker and advisor segments."

Mike Winkel, president of FolioDynamix' FDx Advisors SMA platform business -- and formerly president of SunGard Advisor Technologies -- says the ability to integrate due diligence capabilities with manager rosters is a "great example of the benefits of functional synergies." -FWR

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