Envestnet

ESG in Action: Former flames, missed connections, and turning up the heat

robert.denis — Fri, 22 Sep 2023 17:11:41 +0000

ESG in Action: Former flames, missed connections, and turning up the heat

Display Author

robert.denis Fri, 09/22/2023 - 12:11

This amorphous term ESG encompasses a wide spectrum of information and considerations but is so often assumed to mean something it does not. To paint a better picture of what the term ESG actually means, each month we will be outlining examples of what ESG integration looks like in practice across a variety of sectors, through the lenses of risk, opportunity, and impact.

This month

Sector: Utilities
Industry: Electric Utilities
ESG Issue: Climate Risk Management

Risk: Wildfires

Wildfires, which can be catastrophically destructive, pose one of the greatest financial risks to utility companies, especially in the western US. In California, because of extreme drought, the risk of transmission lines igniting wildfires is particularly high. In the last five years, the state suffered 10 of the most destructive wildfires in its history, with utilities found to be the cause for most.¹ As a result, utilities are expected to create and adhere to wildfire prevention plans.

Pacific Gas & Electric (PG&E), which serves over 5.5 million customers and operates 106,681 circuit miles of electric distribution line and 42,141 miles of natural gas distribution pipelines across California, has been the largest electric utility in the country for nearly four decades.² Since 2018, the utility has paid out over $5 billion in settlements to wildfire victims, with an additional $8 billion in proposed settlements, and has paid hundreds of millions in fines. The company was found liable in court for the notorious Camp Fire which caused record-setting death and destruction, including 85 lives lost. PG&E executives pleaded guilty to manslaughter in this tragic event. Ultimately in 2019, they filed for bankruptcy and remain at risk for a state takeover.³

In 2020, S&P lowered its rating outlook for California utilities from stable to negative as a direct result of their handling of that year’s wildfire season. Moody’s joined them shortly thereafter, lowering PG&E’s rating to “junk.”⁵

A 2022 report by the state legislature found that utility companies have not made enough investment in wildfire prevention, and credit rating agencies have agreed as both S&P and Moody’s have downgraded utility ratings in California as a direct result of wildfire risk.^6,7 Utilities that refuse to invest in vegetation management which reduces the risk of sparks igniting, forecasting equipment to better monitor conditions, and infrastructure improvements like updating aging equipment and undergrounding power lines will continue to face greater wildfire risk as extreme weather conditions increase.

Opportunity: Interconnection grid backlog

According to the Lawrence Berkeley National Laboratory, the leading barrier to the renewable energy transition in the US is the interconnection queue length, or the time it takes energy generation projects to get connected to the country’s power grid.⁸ On average, projects that were connected to the grid last year spent 5 years waiting in the queue, up from the pre-pandemic average of 2 to 3 years.⁹

The increased wait-time is thanks, in part, to the Inflation Reduction Act’s (IRA) investment in renewable energy generation which has flooded the market, directing nearly $400 billion to clean energy.¹⁰ The generation capacity of proposed solar, wind, and battery storage projects today is roughly the equivalent of the grid’s current total installed energy capacity, and exceeds the amount required to reach zero-carbon generation by 2035.¹¹ With such a backlog of projects waiting to be connected to the grid, investment in transmission infrastructure poses strong financial prospects for utility companies.

Impact: Texas heat wave

For weeks this summer, Texas became the hottest place on earth with temperatures reaching a brutal 115 degrees Fahrenheit in some places.¹² And it wasn’t the only record set – as air conditioning became a basic necessity, the state’s power grid, Electric Reliability Council of Texas (ERCOT), reported record usage. Unlike the state’s grid failures during the 2021 winter freeze that caused dangerous blackouts across the state, however, Texas was well prepared for the record usage.

Did you know?
In the first quarter of this year, Texas accounted for 70% of grid battery additions in the U.S. And last year, the state passed California in total installed solar.

Renewable energy sources have been found to be more reliable than fossil fuels during periods of extremely high demand. Since 2021, ERCOT has added roughly 3,000 megawatts (MW) of wind and 10,000 MW of solar since 2020. This rapid growth in wind and solar generation and grid-battery storage supported the grid during the worst of the heat. As the record temperatures peaked, several natural gas and coal plants were knocked offline, eliminating 9,600 MW of electricity in the state, or nearly a third of average demand.¹³ The renewable sources, meanwhile, provided 35% of the energy consumed at the peak of the heatwave. As the sun set each day, making solar power inaccessible, the grid’s battery storage kicked-in to support the demand.

During the infamous winter storm Uri, as natural gas and coal plants were knocked offline by the record demand, existing wind and solar weren’t prepared to support the grid. For decades, ERCOT ignored recommendations to winterize generation utilities, perceiving upgrades to be costly and unnecessary. While the economic impact of the storm is estimated at $300 billion lost, including the bankruptcy of three utility companies, the far worse impact was the death toll, with estimates as high as 900 individuals.^{14, 15}

The positive economic impact of the investment in renewables in Texas may be easier to measure, but it’s the lives saved in Texas this month by a more reliable grid that are of far greater value.

Questions an analyst might ask

Has the utility diversified its generation mix and what kind of investment have they made in renewable sources?
Does the utility have a wildfire prevention plan?
Has the utility invested in grid hardening, upgrading its infrastructure, and forecasting equipment?
How is vegetation management prioritized on utility-owned properties and related to utility operations and equipment?
Has the utility made investments in transmission innovation and equipment?

The bottom line

While U.S. reliance on fossil fuels is a highly debated topic, it’s difficult to argue that climate change and lack of diversification in energy generation is affecting the financial resilience of utility companies and is an important consideration for investors.

Learn more

To learn more about supporting your clients with sustainable investing solutions, reach out to our team at sustainable@envestnet.com or visit envestnet.com/sustainable.

¹ https://www.unearthlabs.com/blogs/why-wildfires-are-an-existential-threat-to-utilities#%E2%80%8Dstrongutilities-are-a-leading-cause-of-wildfires-in-californiastrong
² https://www.pge.com/en_US/about-pge/company-information/profile/profile.page#:~:text=Pacific%20Gas%20and%20Electric%20Company,companies%20in%20the%20United%20States
³ https://www.politico.com/states/california/story/2020/05/18/california-lawmakers-introduce-pg-e-plan-b-that-outlines-state-takeover-contingency-1284524
⁴ https://www.utilitydive.com/news/sp-revises-outlook-for-california-ious-in-light-of-unprecedented-wildfires/585378/
⁵ https://www.reuters.com/article/us-pg-e-ratings-moodys-idUSKCN1P42U3
⁶ https://calmatters.org/environment/2022/03/wildfires-california-utilities-prevention/
⁷ https://www.reuters.com/article/us-pg-e-ratings-moodys-idUSKCN1P42U3
⁸ https://www.utilitydive.com/news/grid-interconnection-queue-berkeley-lab-lbnl-watt-coalition-wind-solar-renewables/647287/
⁹ https://www.utilitydive.com/news/grid-interconnection-queue-berkeley-lab-lbnl-watt-coalition-wind-solar-renewables/647287/
¹⁰ https://www.mckinsey.com/industries/public-sector/our-insights/the-inflation-reduction-act-heres-whats-in-it
¹¹ https://www.publicpower.org/periodical/article/clean-energy-projects-flood-interconnection-queues-causing-backlogs
¹² https://www.nbcnews.com/science/science-news/brutal-heat-wave-makes-texas-hottest-places-earth-rcna91584
¹³ https://www.forbes.com/sites/anandgopal/2023/07/02/batteries-and-renewables-are-saving-texas-in-the-heat-wave/?sh=58863c3921dd
¹⁴ https://www.keranews.org/texas-news/2022-02-16/cost-of-last-years-winter-storm-could-reach-300-billion-new-report-says
¹⁵ https://www.buzzfeednews.com/article/peteraldhous/texas-winter-storm-power-outage-death-toll

Implementing sustainable investing strategies will reduce the universe of investment options available. This may have a positive or negative effect on investment performance relative to strategies which do not utilize sustainable investment methodologies.

Published Date

Mon, 07/31/2023 - 12:00

Transparent Navigation

The future of tax management is year-round, not year end

robert.denis — Thu, 21 Sep 2023 16:41:23 +0000

The future of tax management is year-round, not year end

Display Author

Erik Preus

robert.denis Thu, 09/21/2023 - 11:41

We know that 92% of investors expect their advisor to provide tax planning advice, but only 25% report receiving it.¹

Tax management advice can be a good way for a financial advisor to demonstrate their value to their clients. Clients can often swing between two extremes—being so worried about taxes that it adversely affects their decision making, or ignoring taxes until December or April, when they can do little strategic management.

It is important for financial advisors to take time to explain both short- and long-term capital gains. Tax-loss harvesting is often a part of the conversation, as it is a common way advisors attempt to limit the capital gains their clients realize in a year. Advisors may also employ gain-loss matching, gains deferral, and other tactics that can be used to ensure that a client's portfolio is managed to their specific tax budget.

But manual tax loss harvesting and other tactics can lead to unintended consequences and the timing can be challenging (e.g., there must be losses available, the client can miss out on substantial gains as you wait out the wash sale period, etc.). Such efforts are also traditionally time consuming, as the advisor must assess each client’s needs individually. That is one reason why tax management is often thought of as a year-end or annual process only.

Simply explaining and utilizing tax management techniques can go a long way towards addressing the 75% of clients who report not receiving tax planning advice. However, savvy advisors can do much better than that—utilizing a more precise, “always-on” approach to strategic tax management across their book of business that can strengthen client relationships and potentially improve client outcomes.

H3: Efficient, always-on tax management
Rather than only discussing tax management seasonally, what if there was a way to deliver tax support to your clients that could be always on (vs. yearly or even quarterly) , and customized to each client’s individual capital gains budget?

Efficient, always-on tax management

Rather than only discussing tax management seasonally, what if there was a way to deliver tax support to your clients that could be always on (vs. yearly or even quarterly) , and customized to each client’s individual capital gains budget?

Imagine a tax management service that, once set to your client’s preferences , would keep a constant eye on the capital gains their account has realized YTD, identifying if there are opportunities with securities within the portfolio that could be traded to offset those gains. No annual “manual labor” to be completed by the advisor. Instead, as long as the market is open, the technology monitors the portfolios, looking for opportunities for tax management.

And further imagine, every time a trade is requested within the account, the same service would look at the tax impact of it, given the client's specific tax preferences, to see if there is a more tax-efficient way to get the portfolio a similar risk exposure.

With the right support, sophisticated tax management literally sits at the advisor’s fingertips, ensuring that clients are receiving personalized tax management, not once a year, but year-round.

Year-round tax management can benefit both advisors and their clients

Implementing year-round tax management strategies can help improve client outcomes. Your clients can benefit from not only a lower annual tax bill, but also more certainty around what their long-term capital gains taxes could be. They can enjoy the convenience of discussing both the contents of their portfolio and tax-efficient investing with you at the same time, as you’ll have the correct data at your fingertips for the discussion. And as they see these results, they may also gain confidence that you are addressing their unique risk tolerance, preferences, and tax sensitivities. That confidence can help to build the trust that feeds deep, long-term client relationships.

Download this PDF for a deeper dive into the client outcomes you could expect with year-round tax-efficient investing.

As more and more advisors adopt various technology platforms, year-round tax management becomes an “if you don’t deliver it, someone else will” issue. As we mentioned at the beginning of the post, we already know that clients want you to advise them about tax planning. It is important for you to meet that need. Even with various technology tools, advisors are often either going account by account to manage client taxes, or they may avoid taking a client-focused approach. By taking advantage of outsourced tax management services, advisors are able to both take a client focused approach and scale their practice, offering the service to all their clients, when appropriate.

The conversations you have with your clients around taxes, and the tax savings you help them achieve, can help to strengthen your client relationships and the future of your business. The opportunity is there. Advisors just need to take advantage of the services and support available to make the shift from seasonal tax support to year-round tax support.

For more examples of how to efficiently personalize the way you serve your clients, at scale, visit envestnet.com/personalize.

The information, analysis and opinions expressed herein are for informational purposes only and do not necessarily reflect the views of Envestnet. These views reflect the judgment of the author as of the date of writing and are subject to change at any time without notice. Nothing contained in this piece is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.

Neither Envestnet, Envestnet | PMC™ nor its representatives render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor. Client must carefully determine if the use of tax overlay services is appropriate for their circumstances, risk tolerance, and investment objectives. Tax management services are limited in scope and are not designed to permanently eliminate taxes in the account. In providing tax overlay services, Envestnet will allow Client's account to deviate from Client's selected investment strategy. Client's account may experience significant performance differences from the selected investment strategy due to Client's selection of tax overlay services. Envestnet makes no guarantee that the account's performance will be within any range of the selected investment strategy or the strategy´s benchmark. If Client subsequently disables tax overlay services this may result in the recognition of significant capital gains.

FOR INVESTMENT PROFESSIONAL USE ONLY ©2023 Envestnet. All rights reserved.

¹ Spectrem August 2018 Defining Wealth Management. Neither Envestnet, Envestnet | PMC nor its representatives render tax, accounting, or legal advice.

Published Date

Thu, 09/21/2023 - 12:00

Transparent Navigation

Envestnet | Tamarac release enhances reporting, trading, and CRM

robert.denis — Mon, 18 Sep 2023 17:45:57 +0000

Envestnet | Tamarac release enhances reporting, trading, and CRM

Display Author

Dan Miller

robert.denis Mon, 09/18/2023 - 12:45

Our commitment to continually enhancing our platform allows us to respond to the evolving needs of Registered Investment Advisors (RIAs) and, ultimately, the efficiency of your practice. Here’s an overview of the latest updates.

Tamarac reporting: Enhancements add data access

Automate reporting with PDF Scheduler
We know that producing polished PDF reports for clients is crucial. Whether you send them by mail or through the client portal, these reports should look professional and carry your brand. Our new PDF scheduler makes it simple for advisors to automate this process, generating and sharing PDFs automatically. With just a few clicks, advisors can schedule reports and consistently deliver regular financial statements to clients.

Improve data accuracy with allocation weighted benchmark history
We understand data is crucial for RIAs to serve clients. In this update, we’ve made it easier for advisors to improve data accuracy. Advisors can now easily upload historical data to maintain allocation weighted benchmarks more efficiently. This helps advisors integrate historical allocation weighted benchmark information into the Tamarac platform, enabling them to gain better insights, identify long-term trends, and make data-driven decisions with greater accuracy and confidence.

Enhanced account committed capital bulk reports
Our Account Committed Capital bulk report provides essential committed capital details, including amounts, account numbers, and symbols. Advisors use these reports to extract and analyze data so they can make the most informed decisions for their clients. To enhance this report, we've added the following extra data points:

Federal Withholding
Last Valuation Value
Recallable Distributions

Here’s a look at the new bulk report:

New client portal enhancements
In this release, we’ve made several enhancements to our new Client Portal, creating a more unified client experience. Here’s a look at two key enhancements:

Clients can manage their assets and liabilities. Initially, the client portal only showed assets and liabilities added through Tamarac Reporting. Now, we’ve expanded this feature. Clients can manually add, edit, and delete assets and liabilities, giving them more control.
Display benchmarks on the account performance page. Benchmarks serve as a standardized measure to evaluate portfolio performance relative to a relevant market index. This update lets advisors show these benchmarks on the Account Performance page, enabling clients to see how their portfolio’s performance compares to the broader market.

Tamarac trading: Rebalance summary updates

Add new securities for trading in security level models
Efficient processes are vital for servicing clients well. With this update, advisors can more easily purchase a security in a Security Level Model that is not yet held in an account. This is an essential workflow for advisors who often create custom strategies when trading their accounts, and saves time by making additional securities in the Security Level Models assigned to an account available to be traded.

Tamarac CRM: Enhancements save time

New Snowbird feature saves time and effort
We’re excited to announce the latest addition to our service—a groundbreaking feature that will transform how advisors manage mailing address changes for existing accounts. With the new Snowbird functionality, advisors can easily update clients’ mailing addresses for a specified duration. This functionality automates the entire address updating process, saving valuable time and effort.

Open in Tamarac from reporting groups
Tamarac CRM lets advisors see important financial information about client reporting groups. This integration presents an overview of key financial and rebalancing data points in one place, allowing advisors to access the corresponding reporting group in Tamarac Reporting conveniently. This saves time and streamlines work processes.

Here’s a look at the enhancement:

Learn more

As we continue to innovate and enhance the Envestnet | Tamarac user experience, stay tuned for regular platform updates. Learn how our robust reporting and trading solutions can assist you in providing your clients with customized performance tools and resources. Visit www.tamaracinc.com or give us a call at 866-525-8811.

As you look to enhance your client’s digital wealth experience, our Envestnet | Tamarac teams are excited to introduce our latest enhancements across the entire Tamarac platform.

Published Date

Tue, 09/19/2023 - 12:00

Transparent Navigation

Cash and credit management presents opportunity to RIAs

robert.fundy — Mon, 11 Sep 2023 18:07:12 +0000

Cash and credit management presents opportunity to RIAs

Display Author

Peter Stanton

robert.fundy Mon, 09/11/2023 - 13:07

The result is a demand for financial advisors to be more conversant with, and well positioned to, provide guidance and services for clients regarding how to manage their everyday cash management and lending needs.

This is not new for the truly holistic wealth manager. Yet until now, many advisors have been reluctant to be truly proactive in supporting cash management and lending solutions, leaving many of these services to the side as a reactive accommodation, to be utilized only if a client specifically requests them. Or the advisor defers to the banks, which are now competing with them more strongly than ever for the most profitable relationships.

83% of clients expect loan and credit advice from their advisor. Only 3% felt they actually received that service.¹

Clients are demanding cash management and lending solutions as a critical component to meeting their financial goals and macroeconomic conditions are amplifying the need more than ever. Advisors who continue to ignore these core client needs will ultimately lose business to those that do.

RIAs haven’t been quick to adopt liquidity products

A Datos Insights report highlighted that RIAs are lagging behind other groups in offering liquidity products to their clients.

This is surprising, given client expectations and the general push in the industry to deliver holistic advice. In the report, Datos researchers dig further to identify why advisors don’t actively offer credit solutions to their clients more often and why clients don’t ask for it. There seems to be a simple disconnect in communication over what is available and also how easy or hard it is to leverage credit products to achieve positive client outcomes.

In my view, advisors need to provide their clients with a selection of services and a selection of quality providers in an efficient manner. When an advisor can provide cash management capabilities (addressing the client’s flow of incoming and outgoing funds) that advisor is directly involved in the daily financial life of his/her clients.

In addition, when a client has a significant funding need and does not want to liquidate investments, potentially derailing the investment/financial plan already in place, being able to offer a selection of loans/financing options also becomes essential. The ultimate goal here is for advisors to have access to a broad range of loan types (asset-based or unsecured) from high quality lenders to meet their clients’ personal and business credit needs.

Cash and credit management solutions in the market today

Financial technology can make it easier for advisors to substantially expand the suite of solutions available to their clients, ultimately enhancing their business and delivering better outcomes for clients.

Envestnet’s Credit Exchange powered by, Advisor Credit Exchange (ACE), was recently featured in the Datos Insights report, “When Banks Dial Back Lending: Wealth Managers Have Solutions to Fill the Gap.” The ACE platform puts a broad selection of cash management and lending solutions available from high quality providers at an advisor’s fingertips. The Datos Insights report highlights ACE for having taken the next step beyond providing the technology for supporting cash and credit solutions—They’ve also built a four-layer support infrastructure to ensure advisors and RIAs can successfully implement the solutions.

Research, like that from the Spectrum Group and Datos, shows us that clients want more from their advisors. As technology makes it easier to deliver on those expectations, we expect more and more advisors to offer cash management and credit services to their clients.

To learn more about delivering a more holistic wealth management experience and provide advice-driven liability management solutions to help clients manage both sides of the balance sheet, please contact the ACE Advisor Sales Team at 844.259.2223 or rlmteam@advisorcreditexchange.com.

¹Source: Spectrem Group. https://spectrem.com/Content/expectations-not-always-expected.aspx

Through its ACx technology, Advisor Credit Exchange, LLC (¨ACE¨) provides access to lending solutions for advisors´ clients via the Envestnet Platform through Envestnet Asset Management´s affiliate, Envestnet Financial Technologies. Envestnet, Inc. has a financial interest and occupies board of director positions in ACE. Neither ACE nor Envestnet offers any loan products or makes any lending decisions. The funding and administration of all loans is undertaken by separate and unaffiliated financial institutions. This presentation should not be construed as a recommendation or endorsement of any particular product, service, bank or firm.

The services, platform and materials described herein are provided on an ¨as is¨ and ¨as available¨ basis, with all faults. Each of ACE and Envestnet disclaims, to the fullest extent permitted by law, all warranties, express or implied, including, without limitation, warranties of merchantability or fitness for a particular purpose, title, non-infringement and compatibility. Neither ACE nor Envestnet makes any representations or warranties that access to and use of the internet while utilizing the services as described herein will be uninterrupted or error-free, or free of viruses, unauthorized code or other harmful components. This document may refer to offerings that may be in development and not yet available. Accordingly, nothing in this presentation should be construed as a representation, warranty or covenant by ACE to provide access to specific products or services. ACE and Envestnet reserve the right to add to, change, or eliminate any of their respective offerings without prior notice.

Nothing contained in this presentation is intended to constitute legal, tax, accounting, securities, lending or investment advice, an opinion regarding the appropriateness of any loan or financial product, or a solicitation of any type. Any illustrations herein do not represent client information or actual loans or investments. Any lender(s) or advisor(s) discussed herein are separate from, and unaffiliated with, Envestnet and ACE, therefore, neither Envestnet nor ACE is responsible for their services, products or policies.

2023 has been an interesting—and challenging—year for the banking sector, including some significant bank failures, increased scrutiny on risk management and underwriting standards, a rise in interest rates, and other macroeconomic forces.

Published Date

Mon, 09/11/2023 - 12:00

Transparent Navigation

Fuel growth with cash management and credit solutions

robert.denis — Fri, 08 Sep 2023 17:10:48 +0000

Fuel growth with cash management and credit solutions

Display Author

Jessica Martin

robert.denis Fri, 09/08/2023 - 12:10

I recently hosted an exclusive online webinar event, “Cash & Credit Solutions to Help Expand Client Relationships & Grow Your Practice,” where we talked with partners about how Registered Investment Advisors (RIAs) can fulfill client needs for cash and credit solutions.

For the event, I was joined by Peter Stanton, CEO of Advisor Credit Exchange, Brandon Scott, RIA Business Development Associate, Advisor Credit Exchange, and Melanie Warner, Head of Business Strategy and Business Development, UBS. Our event drew RIAs from around the country who were interested in learning how to add diverse suite lending and cash management solutions to their toolkits to help them differentiate their practice, drive growth, and provides clients with a more holistic wealth management experience.

Here’s a recap of what we covered.

Envestnet’s ecosystem is built to help you expand your practice and solutions offered

To kick off the webinar, I provided an overview of how Envestnet equips RIAs with an expanded array of advice and solutions across a broad range of topics, essentially what we call The Intelligent Financial Life^™. Envestnet’s Financial Wellness Ecosystem is built to help advisors run their businesses more efficiently, turn data into intelligence to power their businesses, help them optimize client portfolios, and potentially accelerate their practice’s growth.

Become a cash management and credit advisor

Stanton emphasized the growing importance of credit in our industry and how other banks and advisors offer these services. The Advisor Credit Exchange (ACx) aims to support advisors in being as proactive as possible in providing lending and cash management solutions while ensuring a simple and straightforward process.

According to Stanton, there’s a clear gap between the services investors desire and the services they actually receive. Research shows that 84% of clients expect their advisor to provide loan and credit management advice. Despite that expectation, only 4% of clients report they receive lending advice from their advisor.¹

Stanton’s insight is that by giving clients what they need and when they need it, like a loan, advisors are in the best position to gain their assets, keep those assets, and make those relationships stickier with choice. He encouraged incorporating banking and lending advice into your daily practice. He then talked about various lending solutions, like loans for residential real estate, securities-backed and unsecured loans, along with advisor compensation details.

Stanton also covered how the Advisor Credit Exchange supports advisors on their journey to become a lending advisor. The platform offers a variety of lending solutions all in one place, providing options within each category. He concluded by explaining how the platform works, essentially enabling advisors to quickly and easily generate automated credit proposals while the Advisor Credit Exchange handles the heavy lifting.

Cash Management Solutions provided by UBS

Warner discussed industry trends amidst the current interest rate environment, highlighting the growing opportunity for advisors as the focus on cash management and lending intensifies. With unified cash and credit solutions on a platform powered by ACx, advisors can help their clients on both sides of the balance sheet.

She outlined five key cash management functions and what clients seek today: cash planning, managing cash flows, controlling cash flows, optimizing cash levels, and investing idle cash. According to Warner, empowered advisors who can provide cash management and lending solutions are better positioned to meet rising demand and address the sophisticated needs of high-net-worth individuals and families.

Warner underscored how cash management benefits practices by deepening relationships, creating operational efficiencies, and potentially increasing assets under management. Wrapping up, she explored UBS’s cash management solutions via the UBS Resource Management Account, featuring the competitive yields available in the Core Savings Account.

Simplifying cash management and lending

Scott led a demo of the ACx platform, showcasing how it merges technology with a personal touch. He guided advisors through using the platform for cash management and lending opportunities, highlighting how it supports both advisors and their clients.

He outlined the steps for getting started with a cash management or lending opportunity and detailed how to generate client documents to clarify the process and expectations. He discussed client communication and stressed how the ACx team keeps advisors well-informed throughout the process.

Viewing a client’s entire financial picture in one place

To wrap up, I introduced the Tamarac Net Worth Report, available through the Tamarac Reporting application. This report offers a comprehensive view (at the household level) of a client’s entire financial picture in one place. By combining holding information from a client’s financial accounts with other assets and liabilities, advisors can provide a holistic financial snapshot in a single report or within the Client Portal for easy viewing.

I then walked through a demo of Tamarac Reporting and how users can view assets and liabilities, update and look at the Net Worth Report, and give clients a complete view. I also showcased our new Client Portal with updated views and more functionality. Finally, I touched on the seamless integration of Tamarac data with the Advisor Credit Exchange, streamlining the platform experience.

Learn more

In case you missed our exclusive online event, “Cash & Credit Solutions to Help Expand Client Relationships & Grow Your Practice,” watch the replay here.

Source:

Market Insights 2022, Spectrem Group, https://spectrem.com/Content_Product/market-insights-2022.aspx

Published Date

Mon, 09/11/2023 - 12:00

Transparent Navigation

A practical approach to diversity, inclusion, and growth for advisors

robert.denis — Tue, 05 Sep 2023 20:29:09 +0000

A practical approach to diversity, inclusion, and growth for advisors

Display Author

Tisha Boyd

robert.denis Tue, 09/05/2023 - 15:29

At Elevate earlier this year, I had an opportunity to host an amazing panel discussion on the topic of diversity and inclusion in financial services. As a follow up, I was able to sit down with two of our panelists to continue our conversation. Our goal was to keep the discussion pragmatic, focusing on actionable, practical and immediate next steps advisors can take to improve their businesses.

Chuck Adams, Co-CEO and Managing Principal of LCW, is an accomplished and adaptive Diversity, Equity and Inclusion leader with over 25 years of proven experience leading transformation in organizations, ecosystems, and teams. He brings to LCW broad global leadership experience in Culture and Inclusion, Learning and Development, Talent Acquisition, HR Operations, and Legal Compliance.

Alisa Kolodizner, Co-CEO and Managing Partner of LCW, came to LCW with over a decade of experience as a nationally ranked, top-performing relationship, financial management, and strategic business consultant for Fortune 500 companies. Additionally, she brings an extensive background in developing, growing, and retaining relationships with billion-dollar businesses, clients, and colleagues. With over a decade of focus on client experience through emerging technology, Alisa has led product and sales departments through pivotal initiatives. A multifaceted sales and cross-silo leader, she thrives in transformative environments with diverse client-centric focused initiatives.

Q: How should advisors think about ‘representation’?

Chuck: Start by acknowledging that all humans are hardwired to gravitate towards people who look, sound, and act like we do (the official term for this is affinity bias). It could be argued that in early societies, this may have been necessary for survival. But now, we’ve evolved beyond that. We understand that different groups have different motivators, experiences, strengths, weaknesses, and knowledge to share. When we say “representation” in financial services, at the most basic level, we mean “do you mirror the population you are trying to serve?”

It is important to not stop at what we might call “performative representation”—e.g., hiring a couple representative people to the team and then continuing with business as usual. The key to being representative is listening and connection. Are you able to talk to and learn from people who are different from you? Are you serving them the way they need to be served?

Alisa: And I would add that it is important to remember that “representation” goes well beyond race or ethnicity. What about gender representation? Global perspectives? Growing up as a female first generation immigrant from a Jewish refugee family, it is so valuable when a professional of any kind takes the time to listen to and understand my perspective, before just trying to sell me something.

Diversity is not how we differ. Diversity is about embracing one another’s uniqueness.
Ola Joseph, international speaker, author, and consultant

Q: What are some concrete ways that representation can help to grow an advisor’s business?

(The following list summarizes our longer discussion)

Having a practice that represents the clients you serve results in:

Higher client retention—Clients are more likely to stay with you for longer and you are more likely to be able to work with multiple generations of the same family
Faster growth and innovation—Different minds, more experiences, and more perspectives empower you to innovate your business in a rapidly evolving industry, giving you the ability to disrupt before you are disrupted
Growth via new business—Affinity bias can work in your favor! When shopping for an advisor, when potential clients can see themselves in your organization you gain an advantage.
Talent retention and hiring—Creating an environment where diverse perspectives are heard and welcomed generally results in a more positive workplace in general. Younger generations are particularly drawn to diverse organizations

Q: How can an advisor take a few steps towards better representation in their practice?

Alisa: Try talking to some diversity and inclusion professionals! These issues are complex and sometimes emotional for people, so it is not surprising that so many advisors feel too overwhelmed to take the first step. If you choose to start working with a diversity professional, they will likely begin by evaluating where you are now and then suggesting a realistic plan forward that is based on your business goals. We’re all working towards stronger, healthier businesses. Generic “diversity” isn’t the goal. The goal is increasing representation in such a way that it benefits everyone.

And if you aren’t ready for a professional, just start by getting curious. Ask questions across your network. How are others handling these issues? Authentically and respectfully asking about and discussing cultural differences is a great start.

Chuck: I’d add, be vulnerable. Don’t let your fear of being vulnerable stop you from being curious. Showing that you care about representation through your conversations and how well you listen (both to your clients and your staff) is a great first step. Accept that you might feel uncomfortable and that’s ok.

Q: What barriers to representation might advisors face?

Alisa: Fear of doing it wrong is almost aways the biggest one. That fear stops a lot of advisors from even saying the words “diversity” or “representation.” Accept that everyone will get it wrong at some point. You have to be willing to be vulnerable enough and humble enough to learn from that. Working with an experienced diversity professional can help with some of the discomfort.

Q: How can advisors know they are on the right track?

Chuck: Your team will tell you. If you’ve truly built a diverse practice and an open environment where all opinions are welcome, you’ll hear both the good and the bad. I think too many leaders worry that if they open the doors to vulnerable, frank conversations, they’ll be pounded with a constant flood of negative comments. We’ve found that is not actually the case. You’ll also learn what is working and how much more welcome people feel. Lean into all of that feedback. Only a person who cares about your organization will bother sharing their suggestions for making it better.

Also, I’d say that you are “doing it right” when you feel constantly challenged but growing. There will be some discomfort, but it won’t be all negative.

Alisa: When your intent (what you want to accomplish) and your impact (what you are accomplishing) are aligned, then you are doing it right . I’m not sure the perfect balance ever happens, but that is what we strive for.

Diversity and inclusion resources for advisors

For a book that the LCW team recently enjoyed, check out: Learning in Relationship by Ronald Short

You can also hear from LCW directly via their podcast, Brave Conversations with LCW, where they have global conversations on diversity, equity, inclusion, and culture. To learn more about the great work LCW is doing, visit: https://lcwinclusion.com/

To access Envestnet’s extensive diversity, equity, and inclusion library, click here. You’ll find a wealth of free training materials, recommended consulting services, and diversity-focused job boards.

Envestnet is committed to providing an equitable, diverse, and inclusive work culture, where everyone is treated fairly, feels a sense of belonging and value, and has the resources and support they need to achieve their full potential. Learn more about our efforts at https://www.envestnet.com/corporate-social-responsibility.

Diversity and inclusion can help advisors to grow their businesses, and their legacy, if they know where to focus their energy.

Published Date

Mon, 09/11/2023 - 12:00

Transparent Navigation

What to expect from our third technology release of 2023

robert.denis — Tue, 05 Sep 2023 17:57:09 +0000

What to expect from our third technology release of 2023

Display Author

Envestnet Wealth Solutions

robert.denis Tue, 09/05/2023 - 12:57

Throughout 2023, Envestnet has been focused on enhancing both the advisor experience and the client experience of our Wealth Management Technology. In our third release of the year, Daran Becker, Head of Product Management, explains our recent updates and what users should expect throughout the end of the year:

Stay up-to-date on all things Envestnet! We invite you to follow us on LinkedIn, Twitter and YouTube. And explore our website to learn more about how to help your clients live an Intelligent Financial Life.

An integrated experience for both advisors and clients.

Published Date

Tue, 09/05/2023 - 12:00

Transparent Navigation

Outsourcing can open the door to more personalized client service

robert.fundy — Fri, 01 Sep 2023 07:24:08 +0000

Outsourcing can open the door to more personalized client service

Display Author

Envestnet, Inc.

robert.fundy Fri, 09/01/2023 - 02:24

Across many industries, consumers are saying that personalization matters. 80% of consumers say it’s important to them to have personalized solutions and 42% get annoyed when content isn’t personalized.¹

In financial services specifically, 70% of wealth management clients see highly personalized service as a factor in deciding whether to stay with their current advisor or switch to another firm.¹ Clients seem to understand that a customized plan will better serve them than something generalized and that assumption is likely correct. A study by Vanguard in 2016 found that personalized advice and portfolio management can lead to higher returns and lower risk for individual investors.²

These data points, and the other research we mention in our recent white paper “Unlocking Personalization at Scale,” suggest that advisors who are able to focus on addressing each client’s unique situation will have happier clients and better outcomes. Unfortunately, without the right tools that is much easier said than done.

Delivering personalization takes time and resources

While advisors may prefer to give each client individualized attention, there is no question that it takes time and resources. One of the main challenges is the need to access and integrate data from multiple sources. To provide personalized investment advice aligned with client risk tolerance and investment goals, financial advisors need access to a wide range of data, including client demographics, financial information, and investment preferences. This data may be stored in different formats and locations, making it difficult to access and integrate. Without robust tools, it is difficult to gain a deep understanding of each client’s financial situation and investment preferences.

Another challenge is scalability. As the number of clients increases, it becomes increasingly difficult for advisors to provide personalized investment advice to each client. Advisors may need to use algorithms to automate the investment process and generate personalized investment advice for each client. We’re also seeing firms successfully turn to outsourcing to efficiently meet client needs.

Advisors turn to outsourcing to free up time

For 12 years, FlexShares has studied how and where advisors are finding efficiencies to better scale and grow their businesses, enabling them to create a better client experience. The body of data that has resulted from these surveys provides a valuable long-term look at how values, practices, and outcomes have changed over a decade of rapid change for the advice business. In their white paper, “The Race to Scalability 2022,” FlexShares explores the connection between outsourcing and scalability.

Their findings show that over the last decade, advisors’ use of third parties for investment management has remained largely consistent. Approximately 41% of survey respondents outsource their investment management. While that proportion has not changed over the last decade, about half of all respondents who do outsource report increasing their overall use of third-party providers over the past three years. It’s clear that the four out of 10 advisors who do turn to outside investment management have become more comfortable with it and are turning to it with greater frequency over time.

Advisors consistently identify a desire to free up time in their practice as a primary reason for outsourcing.

Why the increase in use? The survey shows that advisors consistently identify a desire to free up time in their practice as a primary reason for outsourcing.

Outsourcing has other benefits as well. Importantly, a majority of those who currently outsource believe it has helped them to increase their firm’s revenues and half believe outsourcing provides a way to serve their clients more efficiently.

Expanding your resources to increase scalability

Because of these benefits, as more affordable outsourcing options become available, we expect to see their use increase. To learn more about outsourcing investment management, read the full FlexShares white paper. Northern Trust Asset Management is an Elite Partner of Envestnet for 2023, focusing on the use of data analytics in their sales process and providing practice management expertise to our clients.

Outsourcing investment management is just one way to deliver personalization at scale. For a deeper dive, download our white paper at https://www.envestnet.com/personalize.

¹2018 Gartner report titled, “Predicts 2019: Marketing Seeks a New Equilibrium”
²https://advisors.vanguard.com/insights/article/IWE_ResPuttingAValueOnVa…;

Personalization is generally defined as the act of designing or producing something to meet someone's individual requirement.

Published Date

Fri, 09/01/2023 - 12:00

Transparent Navigation

ESG in Action: Participation, not exploitation

robert.fundy — Thu, 31 Aug 2023 17:40:51 +0000

ESG in Action: Participation, not exploitation

Display Author

Kiley Miller

Carlee Griffeth

robert.fundy Thu, 08/31/2023 - 12:40

This month

Sector: Materials
Industry: Metals & Mining
ESG Issue: License to Operate

Risk: Operating without FPIC

The global mining industry is one of the world’s largest and most visible industries, with over $2 trillion in annual revenue. But its sheer size and its enormous environmental, economic, and social impacts from its operational footprint also raise unique challenges.ⁱ

In some jurisdictions where mines operate, the right to self-determination for indigenous groups is protected under Free, Prior, and Informed Consent (FPIC), a concept formalized by the United Nations and the International Labor Organization, and codified by a number of sovereigns and entities, including the World Bank and across Bolivia. In locations where codified, FPIC requires developers to involve local indigenous groups prior to development, ultimately granting the local groups veto power. While this veto power creates a potential risk for developers who invest in pre-development, like exploration and feasibility studies, a lack of formalized or codified FPIC can create even riskier scenarios for companies down the line.

Mining companies today often have global, multinational operations, with extractive operations typically occurring in underdeveloped nations. The location of a mine can leave the company that operates it susceptible to operational delays, lower productivity, and, even in some cases, violence. Mining sites severely alter the natural landscape and access to resources, which can be highly disruptive to local communities. Not surprisingly, community opposition is common in the development and expansion of these sites, leading in some instances to protests and obstructions. In Peru, the world’s second largest copper producer, indigenous communities have increased their demand for greater benefits for the exploitation of resources, creating blockades on roads and mining areas.^{ii iii} MMG Ltd.’s Las Bambas copper mine in Peru has lost hundreds of transport days since operations began in 2016 due to sporadic protests along the road used to send semi-processed copper to port.^iv

American company Freeport McMoRan and English-Australian company Rio Tinto operate the Grasberg mine, the world’s largest gold and copper mines, located in the Papua province of Indonesia. The mine is a major source of revenue for the Indonesian government and is heavily guarded by police, military, and private security personnel. Separatist groups in the country campaigning for West Papua independence have waged attacks on the mine for decades, on top of operational delays due to labor unrest and disputes with the Indonesian government over rights to operate.^v

Mining operations can also be accident-prone, and weak oversight further amplifies the likelihood of hazardous activity. In January 2019, Vale S.A.’s Brumadinho dam in Brazil collapsed, resulting in 270 fatalities, in addition to loss of property and diminished livelihoods for the surrounding indigenous communities, severely straining the relationship between the company and these populations. In 2021, Vale reached a $7 billion settlement with regulators to compensate the state for the socioeconomic and environmental damage. The incident led to a loss of more than $4 billion in Vale’s market capitalization.^vi

What is FPIC?
FPIC is the consent to develop provided by a local, indigenous group or groups to that is deemed to be:
- Free of coercion, intimidation, or manipulation
- Provided prior to any development activities
- Involves complete and satisfactory information communicated throughout the duration of development

Opportunity: The race to decarbonize

Clean energy technologies—electric vehicles, batteries, solar panels, wind turbines—rely heavily on minerals and metals. One of the most common batteries for electric vehicles, NMC, used by companies like Volkswagen, Mercedes, and Nissan, contains significant amounts of aluminum, nickel, cobalt, manganese, and lithium. Renewable energy infrastructure like wind turbines, particularly those that have magnets to make them lighter and more efficient, require concrete, steel, iron, fiberglass, polymers, aluminum, copper, zinc, and rare earth elements. Electricity networks also require a significant amount of copper and aluminum.^viii

As clean technologies scale, demand for these minerals will only continue to increase, particularly as their applications extend even beyond their current applications, such as copper for electrification and nickel for battery EVs. Steel will also play an enabling role with technologies that require additional infrastructure.^ix

Investors are starting to pay closer attention to where these companies source their materials as supply chain accountability becomes more relevant and the market for these materials gets more competitive. The Responsible Sourcing Blockchain Network (RSBN) tracks cobalt across the supply chain, and Ford Motor Company, Volkswagen Group, and Volvo Cars have joined to demonstrate their responsiveness to responsible sourcing standards developed by the Organization for Economic Cooperation and Development (OECD).

With the rapidly accelerating shift to decarbonization, it’s one thing to produce an electric car and reduce future emissions, it’s another thing to consider the environmental and social impacts of every input that went into manufacturing that car. As these clean energy companies evaluate and further scrutinize their suppliers, metals and mining companies have an opportunity to differentiate themselves in leadership around stakeholder engagement practices and their management of community and labor-related risks to operations.

Impact: Or lack thereof

Particularly across North America where U.S. and Canadian companies have worked to redirect profit sharing to native and indigenous people, there are examples of mining companies that have provided job opportunities and stimulated economic growth for the local communities in which they operate. However, even mines touted as standard bearers for community relations continue to face opposition from indigenous groups who oppose any extraction and seek to preserve natural habitats.^xi Little has been done by the industry to address what happens to these communities once the resources run out.^xii As mineral reserves are depleted and mines close operations, without a plan in place to repurpose mines in ways that offer similar economic opportunities, communities are at risk of being left behind. Much like the impact to communities throughout coal country as coal mines have shuttered, the positive benefits of these metal mines may soon disappear.

Questions an analyst might ask

What objectives has the company set related to minerals waste management and how frequently are those objectives reviewed for progress?
Has the company implemented monitoring procedures to detect tailings dam seepage? What inspection procedures are in place for tailing facilities?
What community development initiatives and investment is the company involved in? Is there systematic involvement of local stakeholders in that process?
Does the company have a commitment to seek or respect the right to Free Prior and Informed Consent of indigenous peoples?
Does the company have a strong policy in place related to bribery and corruption, with programs to support commitments, and a strong whistleblower program?

The bottom line

Companies operate in the real world. The real world includes people, the environment, and the economy. ESG information is just more data to better understand how these systems intersect and interact with one another.

Extractive businesses illustrate this dynamic very clearly. The ability for mining companies to remain competitive will in part hinge on the extent that they are able to manage their impact on people and the planet.

Learn more

To learn more about supporting your clients with sustainable investing solutions, reach out to our team at sustainable@envestnet.com or visit envestnet.com/sustainable/.

ⁱhttps://www.ibm.com/downloads/cas/ZJVQAVJZ 
ⁱⁱhttps://www.reuters.com/world/americas/peru-communities-lift-blockade-d…;
ⁱⁱⁱhttps://www.reuters.com/world/americas/peruvian-communities-resume-bloc…;
^ivhttps://www.bloomberg.com/news/articles/2022-04-27/peru-moves-to-clear-…;
^vhttps://www.reuters.com/article/indonesia-freeport-security-idAFL3N1NE3…;
^vihttps://www.wsj.com/articles/vale-agrees-to-7-billion-settlement-for-br…;
^viihttps://www.washingtonpost.com/world/interactive/2023/electric-car-batt…
^viiihttps://www.iea.org/reports/the-role-of-critical-minerals-in-clean-ener…;
^ixhttps://www.mckinsey.com/industries/metals-and-mining/our-insights/the-…;
^xhttps://www.theglobeandmail.com/business/adv/article-indigenous-communi…;
^xihttps://www.saultstar.com/news/provincial/first-nations-dont-dig-ring-o…;
^xiihttps://www.adn.com/business-economy/2021/12/09/many-see-the-red-dog-mi…;

The ability for mining companies to remain competitive will in part hinge on the extent that they are able to manage their impact on people and the planet.

Published Date

Thu, 08/31/2023 - 12:00

Transparent Navigation

Supporting high net worth investors at scale

robert.fundy — Mon, 28 Aug 2023 18:01:42 +0000

Supporting high net worth investors at scale

Display Author

Michael Featherman

robert.fundy Mon, 08/28/2023 - 13:01

By 2025, that number is expected to increase by 33% to more than 8.8 million. That growth presents an opportunity to advisors who are prepared to meet the needs of this group of investors.

Preparation is the key. In our research , we’ve been able to deepen the industry’s understanding of what these investors need and expect from their financial advisors. Our findings highlight the critical importance of personalization. HNWIs do not want one-sized-fits-all advice from their advisor—they expect customized plans and white-glove service in just about every way.

This post explains what we believe HNWI are looking for and provides some practical suggestions for how advisors might provide personalization at scale, meeting their clients’ expectations efficiently.

Most HNWI are concerned about fees

First and foremost, our research shows that more than half (59%) of HNWIs don’t plan to hire a financial professional. They prefer to manage their wealth themselves and they feel comfortable in their ability to do so. Many HNWI are self-made millionaires and experienced business people who are confident in their own abilities. When we dig into the data, we can also infer that some of their hesitation to hire a financial professional might be due to fee uncertainty and expectations.

72% of HNWI would expect to pay a financial professional $5,000 or less annually.

Our survey showed that 72% of HNWI would expect to pay a financial professional $5,000 or less annually, which is very different from an advisor who might (realistically) ask for $20,000 on $2 million of assets. The billing model matters too. 64% respondents want fees based on investment performance, service quality, and a pay-as-you-go model. HNWI expect firms to move away from AUM based pricing to more innovative pricing structures.

Keeping those expectations in mind, advisors can use the fact that HNWI tend to be experienced business people to their advantage. The first meeting with a new client is an opportunity to make the business case for the value you provide. Help the client to understand all of the ways you can go beyond investment strategy, supporting their tax, estate planning, credit, and insurance needs as well. Remember that while you may be well-versed in various account types, products, and portfolio management styles, many investors may not have that knowledge. They need straightforward, jargon-free education to understand what investment opportunities are appropriate to meet their personal goals.

Understanding their personal goals is also critically important. As we’ll explore next, HNWI expect a customized experience when they work with a financial professional. One-size-fits-all support will not meet their expectations. Their personal goals matter.

Different types of investors have different needs

To make our research findings more actionable, we segmented the data by generation and by wealth band. Here are some of the key takeaways:

Generation	What they are looking for when working with a financial professional	Why?
Baby Boomers	Personal relationships Clarity Holistic approach	Less technology focused More relationship focused
Generation X	Security Support Flexibility	Larger expenses Larger responsibilities
Millennials	Easy access Collaboration Holistic approach	Very engaged Results-oriented
Generation Z	Education Advice based on facts Long-term approach	Still learning Skeptical

Across generations, we found that different wealth bands also tend to have different needs.

Wealth band	What they may need help with
$30 million +	Tax & estate planning Protection (liquidity & volatility)
$5-30 million	Transparency Coordination with 3^rd party providers (legal team, CPA, etc.)
$1-5 million	Clearly defined approach Real-time collaboration

Providing this level of customized service can be time consuming if you don’t adapt your practice accordingly. It is worth noting that specializing in one type of HNW client may also be a practical approach. Consider if your practice is already well positioned to serve one of these groups and tailor your growth strategy accordingly.

Supporting high net worth investors at scale

We’ve identified four key elements of providing personalized service to HNWI at scale.

Deliver educational support
All of the groups mentioned above benefit from some financial education. Not only does it improve their understanding of the value you provide, but it also provides ample opportunities to deepen client/advisor relationships.
Include tax management in your value proposition
HNWI’s tax exposures grow as their wealth grows. As such, these investors need an experienced financial professional to help them to understand their options and to provide advanced services like tax overlays and other tax management services.
Expand your product offerings
HNWI need advisors who think beyond equity and fixed income. Offer estate planning and retirement planning services for business owners. Become an expert in directing indexing, alternative investments, insurance products, and credit options so that you can holistically address your clients’ financial lives.
Utilize actionable data analysis
The key here is making data an everyday part of your business. Institutionalize a process for intaking data to build a strong financial plan from the start, identify what data would trigger strategy changes (so changes aren’t triggered by emotions), and establish a cadence for walking the client through their portfolio performance and ensuring alignment with their goals. Keeping client data at your fingertips ensures personalization and prevents one-size-fits-all advice.

When preparing to serve HNW clients, we often suggest a “build it and they will come” mindset. In order to grow that part of your business, you need design your business model to meet the needs of the HNWI. Technology makes this evolution easier than ever before. HNW clients will naturally choose to work with advisors who understand their unique preferences and needs.

For a much deeper dive into what it means to provide personalization at scale, download our white paper at https://www.envestnet.com/personalize.

To learn more about how Envestnet empowers advisors to deliver the Intelligent Financial Life^™ visit https://www.envestnet.com/why-envestnet.

Capgemini Research Institute. "World Wealth Report 2021," Knight Frank Wealth Sizing Model, Oxford Economics

In 2020 there were approximately 6.6 million high net worth investors (HNWIs) in the U.S.

Published Date

Mon, 08/28/2023 - 12:00

Transparent Navigation

Envestnet

ESG in Action: Former flames, missed connections, and turning up the heat

This month

Risk: Wildfires

Opportunity: Interconnection grid backlog

Impact: Texas heat wave

Questions an analyst might ask

The bottom line

Learn more

The future of tax management is year-round, not year end

We know that 92% of investors expect their advisor to provide tax planning advice, but only 25% report receiving it.1

Efficient, always-on tax management

Year-round tax management can benefit both advisors and their clients

For more examples of how to efficiently personalize the way you serve your clients, at scale, visit envestnet.com/personalize.

Envestnet | Tamarac release enhances reporting, trading, and CRM

Tamarac reporting: Enhancements add data access

Tamarac trading: Rebalance summary updates

Tamarac CRM: Enhancements save time

Learn more

Cash and credit management presents opportunity to RIAs

RIAs haven’t been quick to adopt liquidity products

Cash and credit management solutions in the market today

Fuel growth with cash management and credit solutions

Envestnet’s ecosystem is built to help you expand your practice and solutions offered

Become a cash management and credit advisor

Cash Management Solutions provided by UBS

Simplifying cash management and lending

Viewing a client’s entire financial picture in one place

Learn more

A practical approach to diversity, inclusion, and growth for advisors

Q: How should advisors think about ‘representation’?

Q: What are some concrete ways that representation can help to grow an advisor’s business?

Q: How can an advisor take a few steps towards better representation in their practice?

Q: What barriers to representation might advisors face?

Q: How can advisors know they are on the right track?

Diversity and inclusion resources for advisors

What to expect from our third technology release of 2023

Outsourcing can open the door to more personalized client service

Delivering personalization takes time and resources

Advisors turn to outsourcing to free up time

Expanding your resources to increase scalability

ESG in Action: Participation, not exploitation

This month

Risk: Operating without FPIC

Opportunity: The race to decarbonize

Impact: Or lack thereof

Questions an analyst might ask

The bottom line

Learn more

Supporting high net worth investors at scale

Most HNWI are concerned about fees

Different types of investors have different needs

Supporting high net worth investors at scale

For a much deeper dive into what it means to provide personalization at scale, download our white paper at https://www.envestnet.com/personalize.

We know that 92% of investors expect their advisor to provide tax planning advice, but only 25% report receiving it.¹