Envestnet Launches Advisory Platform For 'Unified Managed Household'
Envestnet announced the next generation of its wealth management platform for advisors, delivering support for the emerging "unified managed household" (UMH).
Advisors employing the UMH model seek to address the client's entire financial situation through focus on effective deployment of all the client's investment assets, not just those managed by the advisor, the vendor said in a release.
Through its platform launch, Envestnet said it wants to empower advisors to not only respond to newly heightened client demand for more customized and open investment guidance but also deliver a fully integrated investment process that makes the advisor's practice more efficient and comprehensive.
The Envestnet platform also provides features enabling advisors to better plan, execute and document a fiduciary process for advice and service, the vendor said.
In a survey of more than 1,000 investors conducted by Envestnet in mid-2010, more than eight of 10 advised investors said they value advice more as a result of the financial crisis. At the same time, nearly six of 10 said their expectations for advisory services have increased.
"After three years of unprecedented financial and market turmoil, it's clear that every advisor needs to create a new kind of relationship with clients," Bergman said. "Investors are eagerly seeking practical solutions for fundamental financial challenges, which seem more daunting than ever, and they want to know that their advisors are working from a position of objectivity and knowledge."
"The Envestnet platform puts the advisor at the very center of a rigorous , comprehensive and integrative portfolio design and investment management process that delivers truly holistic support and, most important, places the client's fundamental needs and goals at the forefront," he said.
"Over the last two decades, advisory service has become increasingly complex. Advisors are challenged by managing different technology and different investment programs and products in order to deliver advice and solutions that serve the multifaceted needs of their clients. What the Envestnet platform does is incorporate all the vital components of the advisor's practice and integrate them to work together in a cohesive way that allows advisors to offer comprehensive advice that's in the best interest of clients," said Bill Crager, Envestnet president.
To specifically address the burgeoning interest in the UMH concept, the Envestnet platform offers data aggregation features that allow the advisor to assemble a complete picture of the client's wealth, encompassing investable assets (those managed by the advisor) as well as external assets (those managed by other providers) and supporting the delivery of more robust investment advice.
"The unified managed household concept represents the next frontier of advisory service," said Crager. "UMH is all about the creation and delivery of truly customized and integrated solutions that analyzes a client's wealth to address the most fundamental, long term personal goals. The UMH is an offering wealthy clients are asking for but the industry has struggled to deliver."
The platform's features are designed to help advisors engender and maintain client trust by making the portfolio design and management process more streamlined and transparent.
"Today, the concept of fiduciary responsibility is resonating more powerfully than ever. Investors remain profoundly shaken by the market downturn and highly cynical about both the markets and the financial services industry," Crager said.
"Financial advisors have a watershed opportunity to strengthen relationships and client loyalty by demonstrating their dedication to doing what they believe is best for every client, and translating their dedication into more powerful portfolio solutions and a more comprehensive fiduciary process."
Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio
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