U.S. Bank, a subsidiary of U.S. Bancorp, will now provide a “unified overlay platform for its non-brokerage wealth management investment relationships,” from Smartleaf, Inc., according to an announcement from Smartleaf on Monday.
These investment relationships are managed through U.S. Bank’s “Private Client Reserve,” and “Private Client Group[s],” which manage assets for clients with between $1 million and $25 million; and less than $1 million, respectively.
U.S. Bank, a subsidiary of U.S. Bancorp, and the “fifth largest commercial bank in the U.S.,” has used Smartleaf’s “overlay solutions” for its “non-brokerage Unified Managed Account (UMA) program since 2007,” the release stated, and now uses the tool for “over 40,000 client portfolios.”
“We analyzed Smartleaf’s performance as the foundation for our UMA program, and were impressed by its ability to simultaneously provide client investment preference customization, a high degree of tax efficiency, consistency, and the ability to view and respond to each account’s needs daily,” U.S. Bank Wealth Management Group CIO Tim Leach said in the release. “Portfolio managers using the Smartleaf system are excited to take further advantage of Smartleaf by making it the common platform for our non-brokerage investment management portfolios.”
“U.S. Bank has observed the efficiency benefits and client service improvements that overlay management delivers,” Smartleaf’s President, Jerry Michael (left), stated in the announcement. “Expanding this program will enable U.S. Bank to offer a highly differentiated service. It represents the logical next step in how banks and financial services companies can better manage their clients’ wealth.”
Privately-held Smartleaf, with $35 billion in assets under management, according to the release, said that, “by integrating a client’s assets into a single, customized portfolio, wealth managers using Smartleaf have achieved significant benefits in tax and expense management, asset allocation and increased returns.”