Fidelity and Envestnet Expand Partnership to Streamline Wealth Management

Envestnet

BOSTON, MA, and BERWYN, PA — Fidelity Investments and Envestnet (NYSE: ENV) announced an expansion of their long-standing partnership to enhance the Fidelity Managed Account Xchange® (FMAX) platform. This collaboration aims to provide a comprehensive wealth and advisory solution, leveraging more than $500 billion in managed accounts.

Envestnet’s 2024 Market Intelligence Survey reveals that most advisors prefer an all-in-one technology platform over multiple point solutions. Currently, 61% of advisors use point solutions that address single needs. However, the preference is clear for platforms that serve broader business requirements. Fidelity and Envestnet are responding to this trend by combining advanced technology, institutional data management, and investment solutions.

“Investment management remains central to an advisor’s role,” said Gary Gallagher, head of Wealth Advisory & Portfolio Solutions at Fidelity Institutional. “However, the increasing demand for holistic wealth management requires advisors to optimize their time and services. Our collaboration with Envestnet aims to simplify business management, improve investment management, and integrate financial planning services.”

A Unified Offering

Fidelity and Envestnet are enhancing FMAX capabilities to support a diverse range of wealth management firms and advisors. These enhancements, delivered through Fidelity’s service model and Envestnet’s improved workflows, include:

  • Holistic Wealth Management: Offering ongoing tax management for model portfolios, including Fidelity’s Custom Model offerings, and integration with Envestnet’s Insurance Exchange and high-net-worth solutions.
  • Enhanced Insights and Reporting: Integrating Envestnet’s data aggregation and performance reporting tool, Vantage, to provide comprehensive insights. This integration allows advisors to view positions and portfolios both on and off Fidelity’s brokerage platform, giving a complete view of clients’ wealth.
  • FMAX Essentials: Introducing a new offering for registered investment advisors (RIAs), broker dealers, and family offices of all sizes. FMAX Essentials, expected later this year, will cater to smaller and mid-sized firms, providing select investment solutions within a customizable, open-architecture framework.
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“As advisors aim to grow and scale their businesses, our expanded relationship with Fidelity offers enhanced workflows, reduced account management efforts, and deeper client relationships,” said Andrew Stavaridis, Chief Relationship Officer at Envestnet. “This partnership holistically addresses financial planning needs.”

The expanded collaboration between Fidelity and Envestnet represents a significant step towards simplifying and optimizing the wealth management process, making it easier for advisors to deliver comprehensive services and meet evolving client demands.

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