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OneDigital Acquires KZ Wealth, Invests in Build’s Risk Mitigation Strategy

Business Growth Strategies

OneDigital Investment Advisors, OneDigital’s RIA, is on the move again, announcing another acquisition and a major investment in a next-gen risk mitigation strategy. 

Following the announcements of several other acquisitions in recent weeks, OneDigital Investment Advisors revealed May 11 that it has acquired business consulting and wealth management firm, KZ Wealth Management.

“With the growing success of KZ Wealth’s business model, our client portfolio and planning needs became more sophisticated, requiring a more advanced level of refinement from our investment partners,” explains Daniel Zlotnick, Principal of KZ Wealth Management. “OneDigital provides the expertise and bespoke customer solutions to deliver on client satisfaction.”

OneDigital Investment Advisors will acquire approximately $600 million in plan assets. This includes managing assets for 160 plans and providing administration for about 300 additional plans. As part of the agreement, OneDigital will also assume Applied Pension Services, LLC, a subsidiary of KZ Wealth, offering full-service actuarial and pension administration services.

With the addition of KZ Wealth, OneDigital’s advisory services and solutions are offered in more than 100 offices and over 50 retirement wealth offices across the U.S., serving around 85,000 clients, 5,000 retirement plans and approximately 900,000 participants. 

Build’s Indexed Risk Control Strategy  

Additionally, the firm announced May 12 that it has allocated $70 million to Build Asset Management to be deployed in Build’s Conservative Indexed Risk Control strategy. 

According to the announcement, Indexed Risk Control launched in January 2020 is a next gen risk mitigation strategy that seeks to provide investors with downside protection while still offering upside potential.

Build will serve as a sub-advisor for OneDigital’s Risk Mitigation sleeve of the firm’s Personalized Portfolios solution, which is OneDigital’s advisor managed accounts solution. The Risk Mitigation sleeve seeks to protect retirement portfolios from catastrophic losses, thereby providing individuals with greater assurance of being able to retire at a planned date.  

“We are excited about this solution because it is an innovative way to deliver value to participants via advisor managed accounts. Build’s investment and risk profile fits our core risk mitigation sleeve, given our focus on improving retirement for all,” notes Vince Morris, President of OneDigital Retirement + Wealth. “This new strategy will potentially help us protect investors from the possibility of a market correction and is just one of the innovative ways we are building out our personalized portfolios offering.” 

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