Fidelity Institutional and Envestnet have reached USD100 billion in managed account assets on Fidelity Institutional’s platform.
The pace of growth for the platform is more than twice the industry rate.
Fidelity Institutional is the division of Fidelity Investments that provides clearing, custody and investment management products to registered investment advisors, broker-dealers, family offices and banks. Envestnet is a provider of unified wealth management technology and services to investment advisors and wealth managers.
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.
“Managed accounts offer three important benefits for advisors: a customizable yet scalable solution, an opportunity for recurring revenue and the freedom to focus on a client’s broader financial picture rather than solely investment management,” says Mark Haggerty, head of Fidelity Institutional’s product group.
According to Cerulli data, the managed account market will climb to USD6.7 trillion in assets under management by 2017, an 18 per cent compound annual growth rate between 2013 and 2017.
“Our industry has reached a critical tipping point where advisors who embrace new ideas and technology are seeing their businesses grow,” says Jud Bergman, chairman and chief executive officer, Envestnet. “Managed accounts are a particularly appealing strategy for embracing the next generation of tech-savvy investors, who want a combination of customisation, efficiency and transparency.”