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COVID-19: Client Update

June 17, 2020

As we await the first day of summer on Saturday, and the celebration of Father’s Day on Sunday, we are reminded that in spite of the pain and uncertainty we have all experienced, we must not lose hope. We should cherish the blessings in our lives, and spend as much time as we can with our loved ones, either in-person or virtually. As challenging and uncomfortable as the present period may be, there is light at the end of the tunnel, and we shouldn’t lose sight of it.

At Envestnet, we continue to operate on all cylinders to ensure the advisors and enterprises that rely on us can optimize outcomes for clients. As the seasons change, we are closely tracking the phased reopening plans in various states where our employees and customers live and work. Like other businesses across the country, we are putting our plan to gradually bring employees back to our offices in Berwyn, Denver, and other locations into action. The health and safety of our employees and their families remain paramount, and, therefore, we are implementing our plan in a considerate, flexible manner. To learn more, click here.

The digital and mobile nature of our platform has allowed us to forge new partnerships during this time, further enhancing our unified advice platform for advisors and their end clients. Our integration with BlackRock has enabled RIAs to leverage the managed portfolios and stress-testing capabilities available in BlackRock’s Advisor Center portal from within the Envestnet | Tamarac platform.

In addition, we recently published a white paper—“RIA Digital Transformation: A Competitive Necessity in a Post-Pandemic Marketplace”—compiled by Aite Group. The white paper is one of many resources we are offering to help you lead your clients and businesses forward in the new era our industry has entered.

To that end, our Envestnet Advisor Summit On-Demand will offer engaging keynotes, breakout sessions, and technology demos to give advisors the intelligence they need to continue delivering essential advice, and staying one step ahead of industry transformation, using Envestnet’s cutting-edge solutions. Sign up here to receive a notification when the Envestnet Advisor Summit On-Demand goes live later this month.

Envestnet | Yodlee COVID-19 Income and Spending Trends

According to Yodlee’s biweekly reports tracking Americans’ income, spending, and saving developments:

  • Discretionary spending on food and staples remains elevated, while spending on most other sectors has softened.
  • Retailing, which experienced a sharp decline in spending in early March, has shown significant improvement.
  • Spending on media and entertainment has increased thanks to higher activity in sectors such as gaming.
  • The majority of consumers across the annual income spectrum—from less than $35,000 to more than $150,000—have applied their stimulus payments toward savings and investments. This trend helps advisors begin discussions with clients on saving and investing opportunities, which could boost outcomes.

Market Pulse

Our in-house market analysts continue to offer the intelligence advisors and their clients need to navigate the present environment:

  • NASDAQ Hits All-Time High: Led by mega-cap technology stocks like Apple and Microsoft, the NASDAQ closed above 10,000 for the first time on Wednesday, June 10.
  • Stock Market Takes a Breather: After weeks of strong gains, the stock market finally took a breather on Thursday, June 11, with the S&P 500 falling more than 6% before regaining some ground on Friday, June 12. Stocks from industries most affected by the COVID-19 pandemic, such as airlines, energy, and banks, drove last week’s decline, despite having powered the market rally of previous weeks.
  • No Rate Increases Through 2022 (and V-Shaped Recovery is Unlikely): After last week’s Federal Open Market Committee meeting, the Federal Reserve announced it has no plans to raise short-term policy interest rates until 2022, which affected long-term bond prices. However, the Fed also announced it expects a long road to economic recovery instead of a V-shaped recovery, cooling market optimism.
  • Virus Concerns Return to Forefront: As some states continue their phased reopening plans, others are seeing resurgence of COVID-19 cases. Total cases across the U.S. exceeded 2 million last week, and total deaths surpassed 115,000.

Advisor Pulse

Fixed income and renewed COVID-19 concerns dominated headlines last week, but clients remain satisfied with their advisors’ performance during the ongoing crisis:

  • The Fed’s announcement about no interest-rate increases through 2022 didn’t appear to make an impact on advisors’ equity purchases, aside from large cap core, which saw significant outflows last week.
  • Advisors continue to actively modify client expectations related to risk and return, with the amount of changes to risk tolerances across our financial wellness network 41% higher last week compared to the previous week.
  • Clients are still demonstrating strong loyalty to their advisors, with client attrition continuing to decline. In another sign of hope, advisors in our financial wellness network experienced a modest increase in new clients last week.

To view a more detailed Advisor Pulse report, click here.

Don’t Hesitate to Reach Out

Thank you again for placing your trust in us. If there is anything we can do to help you and your end clients during this time, please contact us right away. Our Operations and Service teams are here to answer questions and address concerns in a timely manner.

We wish all of the dads in our organization and our customer base a Happy Father’s Day.

And as we continue to celebrate LGBTQ Pride Month, we reaffirm our commitment to strengthening diversity, inclusion, and tolerance across our company, and our industry.

As always, we hope your families and communities stay safe and healthy.


Bill Crager
Chief Executive Officer

Click to View Envestnet's Coronavirus (COVID-19) Planning Update