Neuberger Berman inks direct indexing deal with Key Wealth

Wealth management firm adds custom SMA platform to its shelf of proprietary portfolio products for high-net-worth and ultra-high-net-worth clients.

Neuberger Berman is helping financial services firm KeyCorp enhance its customized portfolio offerings for wealth clients under a newly unveiled partnership.

The new collaboration, trumpeted as an evolution of direct indexing, will see Neuberger Berman’s Customize Direct Investing solution integrated into the proprietary equity strategies of Key Wealth, KeyCorp’s wealth management business.

As of December 31, Key Wealth’s book of business stood at an estimated $188 billion, putting it shoulder-to-shoulder with the nation’s largest bank-based financial services companies.

An employee-owned private independent investment firm, Neuberger Berman has been in existence for 85 years.

Over that time, it’s grown into a multinational firm managing $463 billion for global institutions, advisors, and individuals through a plethora of portfolios that include equities and fixed income, as well as alternative investments spanning private equity, real estate, and hedge funds.

By adding Neuberger Berman’s platform to its own shelf of homebrewed investments, Key Wealth has a new separately managed account option that allows it to build tax-optimized portfolios for its high-net-worth and ultra-high-net-worth clients looking for long-term growth.

The platform promises to go beyond ETFs, mutual funds, and other tax-unaware strategies by “seeking to provide clients consistent tax alpha with precise tax loss harvesting.”

Beyond tax liabilities, the Neuberger Berman Customize Direct Investing offering – which will be applied to the Key core equity, Key sustainable equity advantage and Key high dividend strategies – tailors portfolios according to HNW and UHNW clients’ preferences around personal values, factor tilts, and risk.

“We recognize that taxes can significantly affect portfolio performance, and this is a concern that resonates deeply with our partners and their clients,” Scott Kilgallen, managing director and head of North American intermediary at Neuberger Berman, said in a statement.

“By actively implementing tax-efficient strategies tailored to the unique needs of each investor, we empower portfolio managers with a robust tool,” Kilgallen said.