The latest news about investment products, new structures and service offerings that might be of interest to the wealth management industry.

Vanguard, American Express
US investment giant Vanguard, overseeing more than $8 trillion in client money, has teamed up with card firm American Express to launch a wealth advisory offering. 

The service is aimed exclusively at eligible American Express US Consumer Card Members. Called INVEST for Amex by Vanguard, it features Vanguard’s digital financial planning and investment management expertise coupled with American Express’ differentiated rewards. The service will also include access to Vanguard financial advisors, the firms said in a statement. 

“Advice is a powerful accelerant for investment success, providing coaching and guidance to help investors avoid financial pitfalls, build wealth, and fulfill their long-term goals,” Tim Buckley, Vanguard chairman and CEO, said. “As Vanguard seeks to make our advice more accessible, we are excited to team up with the distinguished brand of American Express to deliver on our mission to give investors the best chance for investment success.”

INVEST clients with at least $100,000 in advised assets will have unlimited access to Vanguard advisor consultations, the statement from the firms said. The offering also includes personalized, goals-based financial plans and sophisticated portfolio management. Vanguard’s service will create a customized investment strategy based on INVEST clients’ circumstances and goals, and provides ongoing management of portfolios constructed with diversified Vanguard ETFs.

Clients with at least $50,000 in taxable assets managed by INVEST will be eligible to earn rewards annually. INVEST clients with an American Express® High Yield Savings Account will also be eligible to receive a cash bonus in their Savings Account.

INVEST for Amex by Vanguard will feature an investment minimum of $10,000 and an annual gross advisory fee of 0.50 per cent, with advisory fees waived for the first 90 days for first-time enrollees.

The firms said the service is “beta” mode today and will continue to evolve with new features in the coming months.