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

BOSTON & CHICAGO--(BUSINESS WIRE)-- 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 $5.3 trillion, including managed assets of $2.0 trillion as of April 30, 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).

Envestnet is an independent company and unaffiliated with Fidelity Investments. There is no form of legal partnership, agency, affiliation, or similar relationship between Envestnet and Fidelity Investments. The information contained herein is general in nature, is provided for informational purposes only and is not legal advice. Fidelity does not provide advice of any kind.
The registered trademarks and service marks appearing herein are the property of FMR LLC and Envestnet, Inc.
Fidelity Clearing and Custody Solutions^SM provides clearing, custody or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC. Members NYSE, SIPC.
Products and services provided through Fidelity Institutional Asset Management (FIAM) to investment professionals, plan sponsors, and institutional investors by Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917
762534.2.0

¹ Represents assets under management, assets under administration, and assets under performance reporting agreements.
² 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 leading provider of unified wealth management technology and services to investment advisors and wealth managers.
³ Compound annual growth rate for the 5-year period 2009-2014 was 42.3% for Fidelity’s Managed Account Solutions program vs. 17.3% for the industry, based on Fidelity Institutional’s internal data and Cerulli Associates Managed Accounts 2015 Summary.
⁴ Expectations of Upcoming DOL Ruling research study which is a part of the 2016 Fidelity® Insights on Advice program. The Expectations of Upcoming DOL Ruling study was an online, blind survey (Fidelity not identified) fielded during the period of January 5th through January 12th, 2016. Participants included 485 advisors who manage client assets either individually or as a team, and work primarily with individual investors. Advisor firm types included 22 banks, 140 independent broker-dealers, 69 insurance companies, 108 regional broker-dealers, 63 RIAs, and 83 wirehouses, with findings weighted to reflect industry composition. This study explored awareness and reactions to the proposed DOL ruling and advisors’ perceptions of its impact on various aspects of their business. The study was conducted by an independent firm not affiliated with Fidelity Investments.
⁵ Donor-advised funds are a type of charitable giving program that allows donors to combine the most favorable tax benefits with the flexibility to support their favorite charities at any time. The Charitable Investment Advisor Program allows a donor with a Giving Account with a balance of $50,000 or more to nominate an eligible advisor to manage a portion of the charitable assets in their Giving Account.
⁶ Based on a survey of 950 donors who give to charity, conducted 2015-2016. The surveys were conducted by W5, an independent research firm. The percentages reported exclude donor responses of NA/Unsure. Questions about understanding of charitable giving vehicles, time spent on charitable giving, charitable budgeting, importance of charitable giving compared to other financial priorities, and ability to give in the future were all asked to half of the base sample.
⁷ Source: 2015 Financial Advisor Community, Investor Planning Research. The Investor Planning study was an online, blind survey (Fidelity not identified) fielded during the period of September 1st, 2015, through September 15^th, 2015. Participants included 390 advisors who manage client assets either individually or as a team, and work primarily with individual investors. Advisor firm types included a mix of banks, independent broker-dealers, insurance companies, regional broker-dealers, RIAs, and wirehouses, with findings weighted to reflect industry composition. The Financial Advisor Community panel research program explored various topics of interest to advisors throughout the year (including financial planning services provided to clients) and was conducted by Bellomy Research, an independent firm not affiliated with Fidelity Investments.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160524006467/en/

FIDELITY

Corporate Communications

617-563-5800

[email protected]

or

Nicole Abbott, 201-915-7548

[email protected]

or

ENVESTNET

Dana Taormina, 973-850-7305

[email protected]

Source: Fidelity Investments