FPO. Fidelity Managed Account Solutions. A strategic integration for managed account delivery

Transcription

1 FPO Fidelity Managed Account Solutions A strategic integration for managed account delivery

2 WHY A MANAGED ACCOUNT? The use of managed accounts by financial advisors has been steadily and rapidly growing, with projections of $6.7 trillion in AUM by 2017.* This is due to some potential benefits that advisors realize by using managed accounts, including: Deepening client relationships Increasing recurring / revenue base / Ability to offer a more diverse set of investment products * Industry data is from The Cerulli Edge Managed Accounts Edition, Cerulli Associates, Q3 2014, and projected industry data is from Managed Accounts 2014 Research Report, Cerulli Associates, June FIDELITY MANAGED ACCOUNT SOLUTIONS

3 The Managed Account Solutions (MAS) Advantage Fidelity has responded with a strategic integration with Envestnet. By combining the reputation, strength, and innovation of Fidelity with Envestnet s advanced wealth management platform, we ve created one of the most comprehensive and integrated solutions available. Reputation. Strength. Innovation. MANAGED ACCOUNT SOLUTIONS A Better Way to Manage Wealth. FIDELITY MANAGED ACCOUNT SOLUTIONS 3

4 The Fidelity Difference Leading Providers Trust Fidelity and Envestnet to provide the best in managed accounts, enabling advisors to stay focused on their business goals. Continuous Investment We re committed to investing in our integrated solutions as the industry evolves, so you can rely on us to always be on the cutting edge. Comprehensive and Flexible Our mission is to help grow your wealth management business by striving for the most comprehensive and integrated solution available, while providing flexibility to deliver managed accounts on your terms. Track Record of Growth with Clients For the last five years, clients of Fidelity s MAS platform have experienced growth rates stronger than the market average. Leading Providers based on Envestnet and Fidelity rankings in The Cerulli Edge Managed Accounts Edition, Q TRACK RECORD OF GROWTH WITH CLIENTS For the last five years, clients of Fidelity s MAS platform have experienced growth rates stronger than the market average. 15% MANAGED ACCOUNTS TOTAL MARKET Total market compound annual growth rate (CAGR) grew 15% % 29% 29% MAS EMERGING CLIENTS AVERAGE Emerging clients had $5 million to $100 million on the platform and grew by 29% with MAS % 18% 18% MAS ESTABLISHED CLIENTS AVERAGE Established clients had more than $100 million on the platform and grew by 18% with MAS % MAS TOP-PERFORMING ESTABLISHED CLIENT Our top-performing established client, as defined by CAGR, grew by 29%. 0 Managed Account Total Market data from analysis of Cerulli Reports data, CAGR from All MAS data is 5-year CAGR as of 9/30/2016, based on Fidelity data. Emerging clients are defined as having between $5M and 100M, and established clients as having over $100M on the MAS platform. 4 FIDELITY MANAGED ACCOUNT SOLUTIONS

5 Comprehensive Advisory Management Programs Separately Managed Account (SMA) Often used to complement a client s existing assets, the SMA program enables the creation of a highly customized strategy using individual separate account managers, mutual funds, and exchange-traded funds (ETFs). Access to an ever-expanding list of more than 300 well-known money managers, representing 1,100+ investment strategies Wrap Strategist Account (Wrap) The wrap strategist program provides professional management, with options ranging from conservative to aggressive to help you meet your clients needs. Access to more than 50 wrap strategists representing a variety of mutual fund and ETF wrap portfolios Leverage externally created models to help maintain advisor focus on client and planning needs Create your own models to help differentiate from competitors, or a combination of models for maximum flexibility Home Office Directed Firms can construct, manage, and publish target asset allocations with security lists or model portfolios to advisors, using proprietary models to help with competitive differentiation. Access to more than 12,000 investment vehicles Advisor Directed The advisor-directed program helps advisors create, manage, and rebalance their own model portfolios. Scale is achieved by assigning many accounts to one advisor-directed model. Access to more than 12,000 investment vehicles, including liquid alternatives Unified Managed Account (UMA) Use this open-architecture vehicle to incorporate various investment model strategies and product types all in a single account with overlay management features. The UMA account may hold a combination of separate account, wrap, and rep-advised models, including mutual funds and ETFs, with rebalancing. Options for locked-down, packaged portfolios or enabling home office or advisor-directed portfolios Potential for tax efficiencies, less paperwork, and sleeve-level reporting FIDELITY MANAGED ACCOUNT SOLUTIONS 5

6 MANAGED ACCOUNT PROCESS PROPOSE SET UP TRADE ANALYZE SUPERVISE Industry-Leading Integration Integration at every stage of the process, to help deliver a great investor experience with efficiency Propose MAS offers key features to help develop and generate proposals, including: Single sign-on to access advisor workstation and managed accounts Prepopulated proposals with client information from our advisor portal Automatic insertion of investor guardrails, such as risk tolerance and time horizon Ability to compare and contrast current vs. proposed portfolios Account Setup Efficiently compile and electronically deliver materials to help establish accounts. Advisor benefits include: Account paperwork prepopulated with client and portfolio information from proposal Easy transfers from our platform to MAS to fund accounts Workflow and imaging process integration e-signature and e-delivery available for electronic paperwork Trade and Execute Advisors can submit and follow trades from start to completion. Integration features include: Single point for advisors to manage trade order compliance, entry, and execution Integration with Fidelity Capital Markets for seamless access to best execution and pricing Automation of systematic withdrawal plans (SWPs) between Fidelity and Envestnet systems Analyze Performance MAS offers an automated analysis with transparent and consistent experience for end investors, who can see performance, statements, confirmations, and quarterly reports in their portal, along with their nonmanaged investments. Consultation, Deployment, Training, and Service Advisors are provided access to dedicated and integrated resources to help them understand and grow managed account businesses. DEDICATED TEAMS BILL PRODUCT RELATIONSHIP DEPLOYMENT TRAINING SUPPORT CONSULTING MANAGEMENT All data based on Fidelity information as of March 15, Fidelity defines MAS Integration in three ways: 1) enabling advisors to work seamlessly between Fidelity s brokerage platform and Envestnet s managed accounts platform, 2) enabling the Home Office to work seamlessly between Fidelity s platform and Envestnet, 3) providing the end investor with both managed and nonmanaged account asset information on their client portal. 6 FIDELITY MANAGED ACCOUNT SOLUTIONS

7 WHY FIDELITY? At Fidelity, our goal is simple: to help you build a greater business. Whether it s the strength and reputation of Fidelity, our commitment to investing in integrated solutions, or our goal to be the most comprehensive and flexible option available, we strive to ensure that all your business needs and goals are met. FIDELITY FIDELITY MANAGED MANAGED ACCOUNT ACCOUNT SOLUTIONS SOLUTIONS 7 7

8 200 Seaport Boulevard Boston, MA To learn more, contact your Fidelity Relationship Manager or Product Consultant. For investment professional or broker-dealer use only. Not authorized for distribution to the public as sales material in any form. The content provided in this document is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. You should conduct your own due diligence and analysis based on your specific needs. Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with any investment or transaction described herein. Fiduciaries are solely responsible for exercising independent judgment in evaluating any transaction(s) and are assumed to be capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies. Fidelity has a financial interest in any transaction(s) that fiduciaries, and if applicable, their clients, may enter into involving Fidelity s products or services. Managed Account Solutions ( MAS ) is a service offered by National Financial Services LLC ( NFS ). Investment advisory and platform management services available through MAS are provided by Envestnet Asset Management, Inc. ( Envestnet ), which is a third-party registered investment advisor and is not a corporate affiliate of Fidelity Investments or NFS (the Fidelity Companies ). The Fidelity Companies assume no responsibility and make no warranties, express or implied, regarding services provided by Envestnet. NFS does not provide investment advisory services of any kind in connection with MAS. Custody, clearing, and other services are provided by NFS. Third-party marks are the property of their respective owners; all other marks are the property of FMR LLC. The third parties listed are independent companies and are not affiliated with Fidelity Investments. Listing them does not suggest a recommendation or endorsement by Fidelity Investments. Fidelity Investments is not responsible for the content of their remarks. There is no form of legal partnership, agency, affiliation, or similar relationship between Envestnet and Fidelity Investments. Fidelity Clearing and Custody Solutions provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC FMR LLC. All rights reserved