AssetMark Trust Enhances its Securities-Backed Line of Credit Program with Supernova Technology

Rhea-AI Summary

AssetMark (NYSE: AMK) has launched an enhanced securities-backed line of credit (SBLOC) program powered by Supernova Technology. The new Cash Advantage Lending service allows clients faster access to low-interest liquidity supported by digital processes, improving the experience for financial advisors and their clients. This program enables advisors to utilize portfolio assets as collateral without liquidating investments, helping maintain market exposure and avoid tax implications. The initiative aims to modernize securities-based lending, making it more efficient and collaborative for wealth managers.

Positive

• Launch of enhanced SBLOC program improves liquidity access for clients.
• Utilizes Supernova Technology for faster loan origination, reducing time from weeks to days.
• Enables financial advisors to offer tailored liquidity solutions while maintaining client investments.

Negative

• None.

CONCORD, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- AssetMark (NYSE: AMK) announced that an enhanced securities-backed line of credit (SBLOC) program powered by Supernova Technology^TM is now available through AssetMark Trust Company, an integrated custodian on the AssetMark platform. The Cash Advantage Lending^SM service now gives AssetMark Trust Company clients faster access to low-interest rate liquidity supported by digital and streamlined securities-backed lending from origination through the life of the loan, creating new opportunities for financial advisors to expand their service offering to meet the evolving needs of their clients.

“Many financial advisors are focused on helping clients grow their personal net worth, and a securities-backed line of credit can be an important tool to help address client liquidity needs while keeping them invested. In many cases, it can be a relatively cost-effective and flexible way to manage liquidity when compared with other sources of credit,” said David McNatt, CFA, SVP of Product Strategy, Management, and Development at AssetMark. “Supernova’s capabilities are helping us lower client interest rates, shorten the loan origination process from weeks to days, and provide financial advisors and their clients powerful tools that enhance education and risk monitoring.”

Cash Advantage Lending is an AssetMark Trust SBLOC program that empowers advisors to employ portfolio-based lending when appropriate for the client. An SBLOC allows investors to use their investment assets as collateral for revolving lines of credit or bridge loans without having to liquidate their investment portfolio, so they can maintain market exposure and avoid potential negative tax consequences. The program gives wealth managers and financial advisors greater flexibility in managing both sides of their clients’ balance sheets.

“We’re bringing securities-based lending into the 21st century, doing away with the manual, paper-driven processes that get in the way with a cloud-based technology platform that automates and accelerates the process,” said Tao Huang, CEO of Supernova Technology. “By working with AssetMark to bring our fully configurable end-to-end capabilities to their enhanced Cash Advantage Lending service, we’re providing investors and advisors with a much faster, more collaborative and transparent experience through the life of the loan.”

About AssetMark Financial Holdings, Inc.
AssetMark is a leading provider of extensive wealth management and technology solutions that power independent financial advisors and their clients. Through AssetMark, Inc., its investment adviser subsidiary registered with the U.S. Securities and Exchange Commission, AssetMark operates a platform that comprises fully integrated technology, personalized and scalable service, and curated investment solutions designed to help advisors and their clients thrive. AssetMark had $63.2 billion in platform assets as of June 2020 and has a history of innovation spanning more than 20 years. For more: www.assetmark.com.

About Supernova Lending, LLC
Supernova Lending, LLC, a financial technology company based in Chicago, has built an industry-leading, fully-configurable, end-to-end software solution to automate securities-backed lending from origination through the life of the loan. The company empowers banks, wealth management firms, and financial advisors with education and software to deliver a low-interest rate liquidity solution to a broad segment of their clients. Using state-of-the-art risk monitoring systems, Supernova provides a robust level of information, data analytics, and transparency that few in the industry can match. The Supernova Technology Trademark is used under license from Supernova Lending, LLC.

Media Contact:
Chris Blake
MSR Communications for AssetMark
chris@msrcommunications.com

SOURCE: AssetMark, Inc.

 

FAQ

What is the new service launched by AssetMark (AMK)?

AssetMark launched the Cash Advantage Lending service, an enhanced securities-backed line of credit (SBLOC) program.

How does AssetMark's SBLOC program benefit financial advisors?

The SBLOC program provides financial advisors with tools to offer clients faster access to liquidity while keeping their investments intact.

What technology supports AssetMark's new lending service?

The new service is powered by Supernova Technology, streamlining the lending process.

What are the advantages of securities-backed lending for investors?

It allows investors to use their portfolios as collateral for loans without liquidating assets, avoiding negative tax consequences.

When was the Cash Advantage Lending service announced?

The service was announced on August 11, 2020.