Blucora Completes Conversion of HD Vest Client Assets to Fidelity Clearing & Custody Solutions®

September 26, 2018

Conversion is part of ongoing effort to create next-generation technology ecosystem for advisors

Expected benefit to segment income of more than $120 million over 10 years,
enhancing profitability and enabling reinvestment

IRVING, Texas, Sept. 26, 2018 (GLOBE NEWSWIRE) -- Blucora, Inc. (NASDAQ: BCOR), a leading provider of tax-smart financial solutions that empower people’s goals, today announced that its HD Vest subsidiary, the pioneer of tax-smart wealth management services, has successfully completed the conversion of client assets to Fidelity Clearing & Custody Solutions®.

The conversion, which represents the culmination of more than 15 months of work, is part of the firm’s ongoing effort to accelerate growth across the entire Blucora platform, and provide the best technology, service, and support to HD Vest’s network of independent financial advisors. This includes creating a next-generation technology ecosystem with integrated applications from across the industry. To learn more, visit: https://www.hdvest.com/philosophy/investment-smarts/#custodial-services.

“This relationship is a win for end clients, advisors and shareholders,” said John Clendening, CEO of Blucora. “The new clearing platform will enable new capabilities like highly integrated business processing, data aggregation, and a world-class client portal, allowing us to better serve advisors, and in turn, end clients. In addition, it will allow better capture of interest income, technology savings and other benefits, which are expected to add more than $120 million to segment income over the life of the agreement—enhancing profitability and enabling additional investment in the business.”

HD Vest’s integration with Fidelity gives advisors a variety of advantages to enable increased efficiency and productivity, with single-sign-on access, including:

  • Fidelity Wealthscape℠ tools for account management and maintenance, trading, and more, including a consolidated view of all brokerage account holdings.
  • Enhanced mobile capabilities.
  • Access to VestAccess, a low-fee, low-account-minimum managed solution that leverages Fidelity Automated Managed Platform (AMP), Fidelity Clearing & Custody Solutions’ digital advice technology co-developed with eMoney Advisor³.

“Equipping advisors to deliver more value to their clients is at the heart of everything we do,” said Carolyn Clancy, Head of the Broker-Dealer Segment at Fidelity Clearing & Custody Solutions. “Our work with HD Vest will help their advisors elevate their businesses and work more efficiently through a robust, integrated platform that includes account management, financial planning tools, workflow systems, and more, as well as steadfast service and support.”

HD Vest plans to continue working with Fidelity and other industry leaders to offer its advisors practice insights, support, and efficiencies, which allow them to deepen client relationships, and do their best work. HD Vest remains committed to enhancing the friction-free experience it provides for advisors by:

  • Improving analytics and reporting.
  • Introducing more trading capabilities, including an enhanced rules engine and trailing stop capabilities.
  • Enabling straight-through processing. 
  • Eliminating third-party technology vendors.

About Blucora
Blucora, Inc. (NASDAQ: BCOR) is on the forefront of financial technology, pioneering tax-smart financial solutions that empower people’s goals. Blucora operates through two primary businesses, HD Vest, the No.1 tax-focused broker-dealer with $45 billion in total client assets as of June 30, 2018, and TaxAct, the No. 3 tax preparation software by market share with approximately 4 million consumer and professional users. With integrated tax and wealth management, Blucora is uniquely positioned to provide better long-term outcomes for customers with holistic, tax-advantaged solutions. For more information on Blucora or its businesses, please visit www.blucora.com.

About HD Vest Financial Services
Since its inception in 1983, HD Vest Financial Services® has supported an independent network of tax and non-tax professionals who provide comprehensive financial services including securities, insurance, money management services, and banking solutions. We have over 3,700 independent contractors, who manage over $45 billion in assets for individuals, families, and small businesses in all 50 states¹. Ranked as one of the top 15 independent broker-dealer firms², we know what it takes to make your practice flourish.

About Fidelity Clearing & Custody Solutions
Fidelity Clearing & Custody Solutions provides a comprehensive clearing and custody platform, brokerage, investment and reporting services, trading capabilities and practice management and consulting to registered investment advisors, including strategic acquirers and professional asset managers, retirement recordkeepers, broker-dealer firms, banks, insurance companies, family offices and wealthy families. Fidelity Clearing & Custody Solutions’ goal is to help clients ensure that they are always future-ready by offering knowledgeable consulting, exceptional people and transformative technology. For more information, please visit https://clearingcustody.fidelity.com/app/item/RD_13569_42626.html.

Media Contact:
Dana Taormina
JConnelly
(973) 850-7305
dtaormina@jconnelly.com

Investor Contact:
Bill Michalek
VP, Investor Relations, Blucora
(972) 870-6463

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain customers; the availability of financing and our ability to meet our current and future debt service obligations and comply with our debt covenants; our ability to generate strong investment performance for our customers and the impact of the financial markets on our customers’ portfolios; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; our ability to attract and retain productive financial advisors; our ability to successfully make technology enhancements and introduce new and improve on existing products and services; our expectations concerning the revenues we generate from fees associated with the financial products that we distribute; our ability to comply with laws and regulations, including, among others, those related to privacy protection and consumer data; expectations concerning the benefits that may be derived from the new clearing platform for our wealth management business; cybersecurity risks; our ability to maintain our relationships with third party partners; the seasonality of our business; litigation risks; our ability to attract and retain qualified employees; our assessments and estimates that determine our effective tax rate; the impact of new or changing tax legislation; our ability to develop, establish and maintain strong brands; our ability to protect our intellectual property; and our ability to effectively integrate companies or assets that we acquire. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release, except as may be required by applicable law.

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¹As of June 30, 2018
²Think Advisor 2016 Broker-Dealer Reference Guide, which measured/ranked the top 25 independent broker-dealers by annual revenue.
³eMoney Advisors LLC is a Fidelity Investments company and an affiliate of Fidelity Brokerage Services LLC and National Financial Services LLC.

HD Vest Financial Services® is the holding company for the group of companies providing financial services under the HD Vest name.

Securities offered through HD Vest Investment Services®, Member FINRA/SIPC. Advisory services offered through HD Vest Advisory Services®, 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038, 972-870-6000.

Fidelity Clearing & Custody Solutions® and National Financial Services LLC (together Fidelity®) are independent companies, unaffiliated with HD Vest Financial Services. Fidelity is a service provider to HD Vest. There is no form of legal partnership, agency affiliation, or similar relationship between HD Vest and Fidelity, nor is such a relationship created or implied by the information herein.

Fidelity Clearing & Custody Solutions® provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 857294.1.0

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Source: Blucora, Inc.