BERWYN, PA — Envestnet is increasing its technology investment in Tamarac by 2.5 times with a $35 million funding push focused on artificial intelligence, reporting and portfolio-management tools, accelerating a broader five-year effort to expand technology for registered investment advisers.
The investment is part of Envestnet’s previously outlined plan to spend $1 billion on research and development over five years. The company is directing the additional Tamarac funding toward reducing manual work for advisers while supporting more complex investment and financial-planning needs.
Envestnet is starting with client reporting, introducing a rebuilt Report Studio that is available now to advisers. The system consolidates reporting functions and allows users to arrange tables, charts, and key performance indicators through a drag-and-drop interface.
An AI-enabled version is available for preview and beta registration, with general availability planned for later this fall.
The planned AI functions will allow advisers to describe the reports they want to create, according to Envestnet. The system is expected to add or modify charts and incorporate performance, attribution, tax and capital-flow information, as well as generate client-meeting briefs and talking points.
“AI only matters if it removes work an advisor is actually doing,” Chief Executive Officer Chris Todd said. “That is the standard we are building to.”
Envestnet estimates that reporting represents a substantial administrative burden for advisers. Using an assumption of five reports annually for each client and 55 minutes saved per report, the company calculated that an adviser serving 235 households could save about 1,077 hours annually.
The 235-household figure comes from the 2025 Dimensional Global Advisor Study, according to Envestnet. The time-savings calculation is based on Envestnet’s assumptions and is not presented as measured adviser productivity.
The Tamarac investment also targets the growing concentration and complexity of the RIA market. Envestnet cited industry data showing firms with more than $1 billion in assets under management represent 7% of RIA firms but control 74% of industry assets.
The company is expanding Tamarac’s Custom Model Solutions to include semi-liquid strategies, interval funds and alternative exchange-traded funds through its unified managed account platform. The additions are aimed at advisers serving high-net-worth and ultra-high-net-worth clients with more complex portfolios.
Envestnet has also completed a broader integration with MoneyGuide, bringing financial-planning information including client goals, risk profiles, net worth and held-away accounts into proposal workflows, investment policy statement documentation and client records.
The company said AI is being incorporated across Tamarac for workflow and decision-support functions, including tools designed to identify potential next actions for advisers.
Its Adaptive Wealth Portfolios technology covers equities, fixed income, alternative investments and tax management, allowing advisers to manage different portfolio structures within the same platform.
Envestnet is positioning the increased spending against changing demands on wealth-management firms, including more alternative investments, held-away assets and tax and reporting requirements. It also cited Cerulli estimates that $124 trillion in wealth will change hands by 2048.
Additional Tamarac upgrades are expected to cover managed-account workflows, integrations, planning, data management, and AI-based adviser productivity tools as Envestnet continues the multiyear investment program.
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