May 16, 2024 WARRENVILLE, Ill.– Alphathena, the Morningstar Fintech Showcase 2023 “Best in Show” winner and a leading AI-powered direct indexing platform for Registered Investment Advisors (RIAs), today announced a partnership with MainStreet Advisors, a Chicago-based RIA. This collaboration allows MainStreet’s clients, who are Banks and Trust Companies across the United States, to deliver personalized investing to clients, offering them a significant competitive advantage in the wealth management marketplace. 

“MainStreet Advisors wants to provide their clients with more than a ‘one-size-fits-all’ investing approach, and we are proud that they have selected Alphathena as their solution,” said Mohan Naidu, CEO of Alphathena. “Together, as partners, we’re taking a significant step toward realizing a shared vision of democratizing access to personalized investing for advisors and investors of all sizes.” 

Direct indexing allows advisors to shape portfolios according to clients’ values and tax characteristics to create customized solutions tailored to the specific needs of each end investor. It offers many of the cost and diversification benefits associated with passive index investing, once available only to an exclusive set of ultra-high-net-worth individuals. 

Alphathena’s technology enables MainStreet Advisors to offer direct indexing to any client, regardless of net worth. 

The platform allows users to customize portfolios across 1,000+ ETFs and 50+ factors, including ESG, and to optimize for performance and benchmark tracking. Advisors using its platform are empowered with time-saving tools like an AI-enhanced workflow that can create personalized portfolios at scale.   

“MainStreet Advisors clients increasingly want investments that allow them to reflect their personal values while achieving their financial goals, but doing so efficiently and effectively is an immense task,” said John Crosson, CEO of MainStreet Advisors. “Alphathena’s user-friendly design and automation help us simplify many of the complexities of personalized investing.”  

Sean Whitney, Senior Portfolio Manager at MainStreet Advisors added: “We wanted solutions that allow us to offer direct indexing efficiently to our clients, but weren’t always comfortable with the loss of control associated with outsourced solutions. Alphathena allows us to keep our direct indexing in-house, leaving more of the client experience in the hands of our team—where we think it belongs.” 

The partnership brings state-of-the-art personalized investing, tax-loss harvesting, and full-scale lifecycle management to the banks and trust companies served by MainStreet Advisors. The companies expect to complete a software integration later this year. 

Alphathena empowers financial advisors, RIAs, wealth managers, fintechs, and TAMPs to seamlessly integrate direct indexing, tax-loss harvesting, and tax-efficient transitions directly into their existing workflows and custodians. With tailored client portfolios and advanced tax optimization, it is a comprehensive solution for optimizing investment strategies and enhancing client satisfaction.