Fidelity® and Envestnet Reach $150 Billion in Managed Accounts on Advisor Platform

─ Demand for Managed Accounts Rises as Firms Increasingly Transition to More Fee-Based Business
─ New Charitable Integration for Managed Accounts Platform Enables Advisors to Provide More Comprehensive Planning Services to Clients

  • Managed Accounts
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  • Managed Accounts
  • Platforms and Tools
  • Managed Accounts
  • Platforms and Tools
  • Managed Accounts
  • Platforms and Tools
  • Managed Accounts

BOSTON and CHICAGO –- Fidelity Clearing & Custody Solutions, the division of Fidelity Investments® that provides clearing and custody to registered investment advisors (RIAs), retirement recordkeepers, broker-dealer firms, banks and insurance companies, announced today that it reached $150 billion in assets on the Managed Accounts Solutions (MAS) platform,1 which is powered by Envestnet, Inc. (NYSE: ENV).2 The pace of growth for the platform is more than twice the industry rate.3 Future growth is also expected to increase due to several factors, including the current regulatory environment. Fidelity's survey of financial advisors in advance of the recently announced DOL Investment Advice Rule found that they plan to recommend managed accounts more often to their clients as a result of the rule, and firms expect a 10 percentage point increase in their use of fee-based compensation once the rule is in effect.4

Fidelity Clearing & Custody Solutions and Envestnet also announced today that broker-dealers using its MAS platform can provide their clients with access to a Giving Account, a donor-advised fund at Fidelity Charitable®.5 Fidelity Charitable research found that about half of donors surveyed donate to charity using only cash, checks, or credit card payments.6 Providing direct access to a donor-advised fund on the Envestnet platform enables advisors to provide a smarter way for clients to fund their philanthropy by choosing the right asset at the right time.

"Over the past few years, advisors have been leveraging our managed accounts platform to provide investment management services for their clients in an efficient and scalable way," said Mark Haggerty, head of product for Fidelity Institutional. "We're now expanding the capabilities available so that advisors can focus on their clients' broader financial picture."

In fact, offering planning services can help advisors grow their business. Fidelity research finds that advisors who provide financial planning services (including charitable planning) to their clients have higher assets under management and higher compensation vs. their peers: their AUM is almost four times greater ($150 million vs. $38 million) and their compensation is 40 percent higher ($200,000 per year vs. $140,000 per year).7

"This milestone is the result of a great relationship with Fidelity that provides advisors with a broad selection of managed account products and wealth management technology to help meet the goals and risk tolerances of their clients," said Jud Bergman, chairman and chief executive officer, Envestnet. "The impressive growth of the Managed Accounts Solutions platform demonstrates that advisors find it to be a powerful set of solutions to deliver better outcomes for their clients."

About Managed Accounts Solutions

Fidelity Institutional built its managed accounts platform to help advisors meet the challenge of efficiently providing their clients with investment management services tailored to their particular financial situations and risk tolerance. Powered by Envestnet's web-based technology, the platform offers access to institutional money managers and hundreds of managed account options, and handles monitoring and rebalancing investments for advisors as the markets change. MAS has seen exceptional growth in part due to its extensive integration with Envestnet which is unique to the industry.

About Fidelity Investments

Fidelity's goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.0 trillion, including managed assets of $2.0 trillion as of January 31, 2016, we focus on meeting the unique needs of a diverse set of customers: helping more than 25 million people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with investment and technology solutions to invest their own clients' money. Privately held for nearly 70 years, Fidelity employs 45,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

About Envestnet

Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth management technology and services to investment advisors. Our open-architecture platforms unify and fortify the wealth management process, delivering unparalleled flexibility, accuracy, performance, and value. Envestnet solutions enable the transformation of wealth management into a transparent, independent, objective, and fully-aligned standard of care, and empower advisors to deliver better outcomes.

Envestnet's Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practices. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software.

Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. More than 950 companies, including 12 of the 20 largest U.S. banks and hundreds of Internet services companies, subscribe to the Envestnet | Yodlee platform to power personalized financial apps and services for millions of consumers. Envestnet | Yodlee solutions help transform the speed and delivery of financial innovation, improve digital customer experiences, and drive better outcomes for our clients and their customers.

For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel (https://twitter.com/envintel).

Our Company

Personal Investing

We provide financial planning and retirement options such as IRAs, annuities, and managed accounts; brokerage and cash management products; college savings accounts; and other financial services for millions of individual investors.

Workplace Investing

We work with employers to build benefit programs for their employees, and provide recordkeeping, investments, and servicing in defined contribution, defined benefit, health & welfare, and stock plan services.

Fidelity Institutional

We bring sophisticated technology and highly personalized service together to offer clearing, custody, investment products, brokerage, and trading services to a wide range of financial firms.

Fidelity Institutional Asset Management

Fidelity Institutional Asset Management is a distribution organization dedicated to the institutional marketplace. It serves consultants and institutional investors, such as defined benefit and defined contribution plans, endowments, and financial advisors.

Fidelity Charitable

Fidelity Charitable is an independent public charity that allows donors to establish a dedicated donor-advised fund to support their favorite charities in the short term and create a systematic plan for longer term philanthropic goals.

Fidelity Labs

Fidelity Labs explores emerging technology and harnesses innovation to benefit Fidelity's businesses and customers.

Discovery Ventures Program

The Discovery Ventures Program is a program focused on startups looking to grow their businesses in the financial services industry. The program is designed to help participating companies better understand how to engage with large enterprises so that they can accelerate their sales into large enterprises and significantly increase their growth.

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