End System Spotlight: What's Popular with Advisors—and What's Next?

By Brian Gannon, Technical Relationship Manager on Thursday, June 16th, 2011

As many partners and advisors have told us, one of the key benefits of aggregating held-away data with ByAllAccounts is that the data can be brought into wide array of end systems, such as reporting platforms, back office services, rebalancing tools…you name it. 

We make a point of keeping a constant dialogue going with end system providers—and most recently, we spoke with Envestnet Asset Management, provider of a cloud-based solution that incorporates reporting and front-, middle- and back-office services all under one umbrella. Specifically, I spoke to Karle Flentge, Vice President of Reporting Solutions at Envestnet, about their system and how advisors leverage held-away account information within it for added value.

Q: In general, where does held-away account data “fit in” within the Envestnet platform?

A: Generally speaking, there are two types of accounts an advisor can view through Envestnet – those managed on Envestnet by the advisor (Managed) and those that are outside of our system (Reporting Only).  BAA-supplied accounts are considered Reporting Only accounts.  This means that Envestnet treats the information as read-only and understands that it cannot create trades for those accounts.  However, those accounts are updated, reconciled, and ready for inclusion alongside the Managed accounts on all reports.

Q: What are some of the popular features within the Envestnet system where Advisors are bringing in held-aways?

A: As is usually the case, the inclusion of held-away accounts enables the advisor to see the whole financial picture for a given client. Through Envestnet, advisors can get a complete snapshot of client and/or account group information from an at-a-glance viewpoint. From asset allocation to dollar and time-weighted returns, advisors are able to leverage comprehensive overview reports to offer informed advice based on all of clients’ investments, including held-away assets.    A particularly popular use of held-away information within Envestnet is the Target Allocation Report. What advisors will do is assign the desired asset class allocation target to a client’s set of accounts. As held-away accounts are added to that set, the assets within are automatically assigned to the appropriate asset classes by Envestnet. This enables the advisor to run the Target Allocation Report at any time to see how held-away assets are affecting the overall allocation. In addition, many advisors utilize Envestnet’s billing administration services to charge fees for advice on held away assets.

Q: What are possible upcoming features on the Envestnet system that may be of particular interest to advisors who are bringing in held-aways?

A: We are currently exploring ways to create a tighter integration between held-away assets and managed products within our system that would include custom notifications and other similar mechanisms. For example, increasing a position within a held-away 401(k) account may be the ideal way to meet the allocation prescribed by one of many analytical tools available via Envestnet. With a custom notification, the advisor can be alerted instantly about a drift in any of the accounts within the allocation. If it’s a held away asset, the advisor can notify the client immediately to determine what should be done about the current allocation of the accounts.   

Q: If someone is interested in learning more about Envestnet and their data aggregation, performance reporting and wealth management services, how can they learn more?

A: They can visit www.envestnet.com/reportingsolutions or call us at 888-612-9299 and ask for the Reporting Solutions Group.

The information provided is based on currently available information as of the date of this writing and may be subject to change at any time without prior notice. Envestnet makes no representation that the information provided is accurate, reliable or error-free. Envestnet reserves the right to add to, change, or eliminate any of the services and/or products listed herein.

Envestnet is a registered investment advisor with the SEC and engages in the business of providing technology-enabled wealth management solutions to financial advisors.

©2011 Envestnet. All rights reserved. 

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