Goldman Sachs has for decades set its distinguishes on the global elite when it comes to wealth management. Now, it’s opening up to everyone else.
The bank has begun internal assessing of a new automated investment service ahead of a broader rollout early next year, according to an email obtained exclusively by CNBC. Workers who sign on to the digital service, called Marcus Invest, will pay an annual management fee of 0.15%, according to the company memo.
“As we make provisions for for the public launch in Q1 2021, we are pleased to invite consumer and wealth management colleagues to provide early feedback on Marcus Provide through our beta program,” the email said. The memo was signed by Tucker York and Stephanie Cohen, co-heads of the consumer and copiousness management division.
Goldman’s move is the latest example of a shift toward Main Street that begun in 2016 with its Marcus brand name of personal loans and savings accounts. The bank, which has long catered to the ultra-wealthy, corporate officers and institutional investors, is essay new sources of revenue away from trading and investment banking.
As part of that push, the firm hopes to broaden its reach in mine management to the so-called mass affluent. For years, the bank has mostly targeted clients with at least $25 million to install for white-glove service from its private wealth management group. Then last year, Goldman acquired boutique cornucopia management firm United Capital to help it serve single-digit millionaires.
The Marcus Invest account, however, can be started with as smidgen as $1,000, according to the memo. Users can choose among three model portfolios composed of ETFs from Goldman and longest providers. It will be integrated with other offerings, including a personal finance tool called Marcus Understandings, on the Marcus app and online portal. A Goldman spokesperson confirmed the authenticity of the Dec. 14 email and declined to comment further.
Goldman’s fallout for the masses comes years after versions from competitors including Morgan Stanley and Bank of America and the start-ups that pioneered the technology. What differentiates Goldman’s is that some of the wise man firepower once reserved for the firm’s richest clients will be funneled into the digital service.
“Marcus Swear in helps take the heavy lifting out of investing with managed portfolios of ETFs based on models designed by our co-workers in the Investment Strategy Group, and featuring GSAM’s ActiveBeta and Access ETFs in select portfolios,” according to the memo. The unmovable’s Investment Strategy Group steers asset allocation for private wealth clients. It’s GSAM unit, which upholds for Goldman Sachs Asset Management, is known for a popular series of smart-beta ETFs.
The 0.15% management fee is “special wage-earner offer,” according to the bank. While the company wouldn’t say how much it plans on charging nonemployees, it’s likely to be in line with contenders’ pricing for automated investing, according to a person with knowledge of the plans. Morgan Stanley charges 0.35% and Bank of America’s Merrill category charges 0.45% on select tiers of service.
Goldman executives had originally targeted a 2020 release for the digital opulence management service but were delayed by the coronavirus pandemic. The firm’s next move is likely to be a Marcus checking account that desire be available through the app, part of the bank’s vision for the retail bank of the future.
Since pushing into consumer bankroll, the bank has tested new products with its employees to work out bugs, including with the Apple Card, which was released endure year. In the internal message, the bank warned employees against sharing details of its latest project, calling it hush-hush and voluntary.
“Portfolios are pre-approved by firmwide Compliance and do not require trading pre-clearance,” Goldman said. “After your account is set up, your account choice be monitored daily and rebalanced periodically to help you meet your goals.”