Literature Type: Commentaries

We’ve been on quite the roller coaster ride in the last quarter of 2018. Market volatility has returned. Perhaps that is a sign of a more normal market environment, but that’s not the point of this Envestat. Market volatility often drives investors into emotional and perhaps irrational behaviors. So it matters how a portfolio is constructed and managed.

Our previous Envestat revealed that while demand for impact investing is growing, it remains just a small percentage of Envestnet's overall SMA accounts. One reason for this shortfall may be the concern that there is a tradeoff in performance when choosing impact investments. However, our Envestat data revealed that this is more perception than reality.

In this edition of Envestat, we examined average client and advisor fees over the past three years by account size and distribution channel to answer some key questions:

• How significant is the fee compression?
• Does fee compression differ based on the size of the account?
• How are various wealth management distribution channels affected by fee compression?

Are you confident you are choosing the best managers for your clients? The data may surprise you.