Since Launching in 2013, Envestnet Is Now One
of the Largest Direct Index Separately Managed Account Providers,
Offering Clients a Passive Strategy that Combines Tax Management
and Customization Amid Surging Adoption and Demand
BERWYN,
Pa., Feb. 28, 2024 /PRNewswire/ -- Envestnet,
Inc. (NYSE: ENV), a leading provider of integrated technology,
intelligent data and wealth solutions, recently celebrated the 10th
anniversary of the launch of its Quantitative Portfolios (QPs), the
company's internally managed direct indexing solutions for advisors
available on its industry leading platform. First made available in
2013 to provide clients with a passive strategy that combined tax
management and customization, today Envestnet is one of the largest
direct index separately managed account providers, with more than
$9 billion in QP assets as of the
fourth quarter of 2023.
"We continue to serve more and more advisors as they address
important investor needs on the industry's most advanced and
integrated technology platform. Since we launched our very first QP
ten years ago, direct indexing has become the most popular separate
account strategy across our ecosystem," said Brandon Thomas, Envestnet's Co-Founder and
Co-Chief Investment Officer. "As advisors look to customize
their client's portfolios through solutions such as tax management
and values alignment, our QPs address needs that are often
overlooked by 'one-size-fits-all' passive investments. Taking this
one innovative step further, since the inception of the QPs we have
created custom index strategies for clients seeking to achieve a
variety of objectives."
Created to offer advisors in Envestnet's ecosystem access to
direct indexing solutions for clients, Envestnet's QPs are a suite
of asset class-specific investments that blend the benefits of
"beta" investing with the portfolio customization of managed
accounts. For more information about Envestnet's QPs, which are
managed by the company's quantitative asset management unit, QRG
Capital Management, Inc., please visit:
https://www.envestnet.com/qrg/.
Over the past three years, Envestnet's QPs offering has grown by
40 percent annually in accounts and advisors. According to Cerulli,
total direct index industry assets were $434
billion at the end of 2022, and they expect direct index
assets to grow at a 12% clip over the next four years – outpacing
the growth of mutual funds and ETFs over that same period[1].
Envestnet offers four varieties of QPs, each aiming to improve
after-tax and risk-adjusted results—in a cost-effective manner.
- Market Series Quantitative Portfolios: Market Series QPs
feature low-cost access to important market segments coupled with
opportunities for customization and tax management.
- Factor-Enhanced Quantitative Portfolios: Factor-Enhanced
QPs provide the potential for excess returns via increased exposure
to prominent asset pricing factors such as value, momentum,
quality, and low volatility factors.
- Sustainable Quantitative Portfolios: Sustainable QPs
explicitly focus on companies with high sustainability ratings
and/or environmental, social, and governance priorities.
- Fixed Income Quantitative Portfolios: Fixed Income
QPs contain a subset of the constituents in the investment-grade
bond universe and are constructed to provide consistent income
generated from a diversified set of securities.
"Over the past decade, Envestnet has remained one step ahead of
the ongoing evolution of direct indexing solutions – providing
these solutions on the industry's leading technology platform to
drive advisor growth and productivity," said Dana D'Auria, CFA,
Co-Chief Investment Officer and Group President of Envestnet
Solutions. "We are proud to celebrate 10 years of offering QPs,
our direct indexing solutions, to advisors in our ecosystem. Over
the past few years alone we have seen a surge in demand for these
products, in line with overall industry trends, and we expect this
growth to continue going forward."
ABOUT ENVESTNET
Envestnet is helping to lead the growth of wealth managers and
transforming the way financial advice is delivered through its
ecosystem of connected technology, advanced insights, and
comprehensive solutions – backed by industry-leading service and
support. Serving the wealth management industry for 25 years with
more than $5.8 trillion in platform
assets—more than 108,000 advisors, 16 of the 20 largest U.S. banks,
48 of the 50 largest wealth management and brokerage firms, more
than 500 of the largest RIAs -- thousands of companies, depend on
Envestnet technology and services to help drive business growth and
productivity, and better outcomes for their clients. Data as
of 12/31/2023.
Envestnet refers to the family of operating subsidiaries of the
public holding company, Envestnet, Inc. (NYSE: ENV). For a deeper
dive into how Envestnet is shaping the future of financial advice,
visit www.envestnet.com. Stay connected with us for the latest
updates and insights on LinkedIn and X (@ENVintel).
- Cerulli's US Managed Accounts 2023 Report, Direct index assets
totaled $546.7B at 9/30/31, per
Cerulli Managed Accounts Edge 4Q23
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SOURCE Envestnet