Bank of America is adding sustainable, hybrid and high-net-worth model portfolios to its lineup, giving Merrill Lynch advisors more options for portfolio creation, Bank of America announced today.
The expansion provides Merrill Lynch advisors and their clients with access to an expanded mix of active, passive and hybrid strategies, Bank of America said in a statement.
Three new investment managers, DWS, Goldman Sachs Asset Management and Neuberger Berman, have been added to the Merrill Lynch Investment Advisory Program offering sustainable model portfolios. “These new sustainable models from third-party managers expand upon an existing suite of sustainable model portfolios managed by the company’s chief investment office,” Bank of America said.
In addition, Merrill advisors and their clients will gain access to 10 new hybrid model portfolios through a partnership between Vanguard and Capital Group, which is the home of the American Funds. “The models include both taxable and tax-aware portfolios that pair Vanguard index ETFs with American Funds’ active funds. Vanguard will serve as strategist for the models,” Bank of America said.
“Finally, Merrill has expanded its roster of tax-efficient, high-net-worth portfolios with the addition of new hybrid model portfolios from Columbia Threedneedle Investments,” the announcement said.
“Now more than ever, people are looking for opportunities to make a positive impact. The new sustainable model portfolios expand our existing lineup of sustainable and impact investing vehicles, offering clients more ways to seek the change they want to see in the world while continuing to pursue their financial goals,” Jackie VanderBrug, head of sustainable and impact investment strategy in the Chief Investment Office for Merrill and Bank of America Private Bank, said in a statement.
Expanding the model portfolios offerings is a continuing process at Bank of America. In September, the company added other model portfolios from new and existing investment managers to its investment advisory platform. Since launching model portfolios under its CIO in 2017, the offerings have expanded to include 140 model portfolios from 17 different third-party investment managers, and nearly 125 CIO-managed model portfolios. Nine out of 10 Merrill Lynch wealth management advisors use at least one CIO model portfolio, and half are leveraging more than five sustainable investing solutions for clients, Bank of America said.