Envestnet | Tamarac White Paper: Technology Integration Leads to 20% More Annual Income for Advisors

Aite Group Study Quantifies How RIAs Using Integrated Technology Are More Profitable

CHICAGO, IL — June 18, 2013 — Envestnet | Tamarac, part of Envestnet, Inc. (NYSE: ENV), a leading provider of integrated web-based portfolio and client management software for independent advisors and wealth managers, has released a white paper showing that financial advisors at independent RIA practices with some degree of technology integration earn approximately 20 percent more in annual income than their counterparts at independent RIA practices with no technology integration.

The white paper, entitled RIA Productivity and Profitability: Integration Pays, was produced by Aite Group, an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. The study was undertaken to examine the impact of technology integration on the profitability of independent RIA practices, and is based on the results of an online survey of 201 primary financial advisors at independent RIAs conducted by Aite Group in March 2012.

“Since independent RIAs are small shops that have been built from the ground up, there is often a tendency to source technology components from vendors or acquire them from custodians, which often leads to systems that do not integrate well with one another,” said Stuart DePina, Group President, Envestnet | Tamarac. “But advisors that use an integrated solution experience more efficient and profitable practices.”

The study found that RIAs with some level of integration have almost twice the amount of assets under management (AUM) as RIAs with the same size staff but with no integration — approximately $90 million more in client assets on average. Practices with integrated technology also produce an average of $100,000 more in annual revenue than their counterparts with no integration. In addition, the study revealed that the staffs of firms with at least some technology integration spend 32 percent less time on operation processes than the staffs at firms with no integration at all, freeing up approximately 40 weekdays each year for every employee to engage in more revenue-generating activities, including client management and prospecting.

Despite the obvious benefits of technology integration, only 7 percent of advisors surveyed stated that their firms’ business applications have deep and meaningful cross-product functionality. More than 30 percent, on the other hand, said their firms have no technology integration. This study’s findings prove that these advisors can increase their firms’ profitability by adopting integrated technology platforms.

“Although independent RIAs do not possess the large technology budgets and staffs of larger firms, choosing integrated technology quickly levels the playing field,” said Alois Pirker, Research Director at Aite Group.

In order to access this white paper, please visit www.tamaracinc.com/White-Papers.aspx. For more information about Envestnet | Tamarac, please contact Jami Schlicher at (973) 850-7309 or jschlicher@jcprinc.com.

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 results.

Envestnet's Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practice. 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.

Aite Group is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments and insurance, Aite Group’s analysts deliver comprehensive, actionable advice to key market participants in financial services.

Headquartered in Boston with a presence in Chicago, New York, San Francisco, London and Milan, Aite Group works with its clients as a partner, advisor and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends.

For more information on Aite Group, please visit www.aitegroup.com.

Jami Schlicher, JCPR
(973) 850-7309

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