CHICAGO, IL, May 7, 2015—Envestnet, Inc. (NYSE: ENV) announced today that it has launched ENVESTAT, an industry analytics platform that will deliver insights, trends and predictions about investor behavior and advisory practices. ENVESTAT will be introduced today during the Envestnet Advisor Summit (http://www.envestnet.com/advisorsummit), which is underway at the Hilton Chicago.
Envestnet will publish a weekly ENVESTAT report that delivers compelling insights, building towards a comprehensive quarterly commentary. The inaugural series will focus on the key drivers contributing to the growth of an advisory practice. The weekly analytics in this series will explore how much of an advisor’s asset growth can be attributed to the following factors:
• Deepening existing client relationships
• Broadening existing client relationships
• New client relationships
• Market performance
• Program selection
Comparing the top decile of advisors to the average advisor in 2014, the first ENVESTAT will reveal that the key growth drivers can be attributed to deepening and expanding existing client relationships, market performance, and program selection. ENVESTAT further revealed the top decile of advisors:
• Increased net new assets from existing relationships by 16.8% compared to 1.51% for the average advisor
• Increased assets from market performance by 9.5% compared to 4.13% for the average advisor
• Preferred the use of UMA, SMA and fund strategist programs, choosing these programs 61.6% of the time compared to 53.57% for the average advisor
“ENVESTAT is our latest initiative in keeping with our mission to empower advisors with better information to grow their businesses and better serve their clients,” said Bill Crager, President, Envestnet. “Envestnet is in a unique position to illuminate previously hard-to-find insights about investor behavior and advisor practice patterns. Anyone can tell you that advisory practices are growing, but we have the capability to tell you how and why.”
Weekly ENVESTAT reports and quarterly commentaries will be archived and made available to all industry participants through the Envestnet Institute (https://www.envestnetinstitute.com), Envestnet’s advisor education portal. As the ENVESTAT archive grows, a searchable database will be added to the Institute portal to enable review of historical data and custom analytics.
“We expect to enhance the ENVESTAT platform with new industry benchmarks, additional data sources, and predictive analytics,” said Lincoln Ross, Executive Vice President, Advisory Services, Envestnet. “We look forward to helping the industry better serve investors by providing a more precise understanding of investor behavior and advisor practices.”
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.
For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel (https://twitter.com/envintel).