Invesco buys Jemstep, the US B2C robo-advisor

Invesco has acquired Jemstep, a US B2C robo-advisor designed to enable investment advisors to automate their business while retaining their own portfolio models and strategies. Invesco plans to take the product in-house, re-brand it as Invesco Jemstep and use the technology to upgrade the tool kit for its own financial advisers and broker/dealers. Invesco joins BlackRock, Vanguard, Fidelity and Charles Schwab in the growing list of traditional asset managers that have adopted some form of digital advice strategy. Earlier this week we reported that social media firms are making plans to enter the space; strong signs that Morgan Stanley will join the fray; and news that BBVA Compass has partnered with FutureAdvisor, the B2B robo-advisor bought by BlackRock last year. We expect to see more developments in the sector over the coming weeks.

Investment management firm Invesco Ltd. has acquired Jemstep, one of the first online automated investment platforms in the financial services industry, in the latest bid to offer more robo-technology to traditional advisers.

The technology service, which will be called Invesco Jemstep, will continue to focus on financial advisers. Atlanta-based Invesco, which has about $800 billion in assets under management, will have its sales and service teams work with home offices and advisers to implement Jemstep’s technology, which includes tracking adviser progress, viewing client data and managing risk.

“We have a deep history of providing advisers with the tools they need to help their clients achieve their desired investment outcomes,” said Martin L. Flanagan, chief executive and president of Invesco, in a press release. “As we continually look to enhance our partnerships with advisers, we recognize that digital solutions can expand their options for meeting client needs.”

Through Jemstep, Invesco also will offer advisers more than market-cap weighted indexing, and include services such as investment strategy, said Peter Intraligi, head of distribution for North America at Invesco.

“Jemstep’s platform is specifically designed for financial advisers and we are really looking forward to supporting financial advisers by providing them with digital solutions they need,” Mr. Intraligi said.

The transaction closed on Tuesday, but terms of the deal were not disclosed. Jemstep chief executive Kevin Cimring and president Simon Roy will remain with the company.

Jemstep has been a unique company in the industry, offering robo-adviser platforms to advisers rather than managing assets. Previously it had been an online automated investment platform as well, before shifting gears to offer its software instead.

With Jemstep, advisers can add a portal to their websites where clients can onboard themselves. In July, it teamed up with Trungale, Egan + Associates to help advisers market their robo-advisers.