New Managed Accounts Offering Will Enable
Asset Management Firms to Offset High Cost of Administering
IRA
The IRA Accounts and Servicing will be Powered
by Leading Fintech Company, IRALOGIX
CHICAGO and BERWYN,
Pa., Nov. 6, 2023 /PRNewswire/ -- The
retirement groups within Morningstar Investment Management LLC
("Morningstar Retirement"), a subsidiary of investing insights firm
Morningstar, Inc. (Nasdaq: MORN), and Envestnet, a leading provider
of integrated technology, intelligent data and wealth solutions,
are planning to launch a managed accounts service for Individual
Retirement Accounts (IRA) powered by IRALOGIX. This new offering
will be custodied by Matrix, a subsidiary of Broadridge Inc (NYSE:
BR) and will make it easy for individuals—regardless of account
balance—to receive personalized investment advice on their IRAs. It
combines Envestnet's fund selection and model portfolio-building
capabilities with Morningstar Retirement's managed accounts
methodology, investment engine, and digital delivery platform.
Expected to launch in the first quarter of 2024, the service
will be packaged within an IRA serviced by IRALOGIX, which offers
low-cost investments by leveraging institutional share classes
rather than retail share classes. Morningstar Investment
Management's platform blends those portfolios to design unique
portfolios that are aligned with an account holder's specific
profile and situation. It then manages that portfolio for the
account holder, adjusting the investment strategy as the person's
situation and investment objectives evolve. The IRA product(s) will
also have no minimum account size requirements, making it easier
for those with low balances to gain access to personalized advice.
IRALOGIX is a leading fintech company in which Morningstar Inc. is
an investor.
"We believe the IRA space is ripe for innovation and
personalization," said Brock
Johnson, president of Morningstar Retirement. "Nearly 40
percent of U.S. households own an IRA, yet the vast majority do not
have an advisor and will never be able to retain an advisor because
their balances are too small. With the help of Envestnet Workplace
Solutions and IRALOGIX, we aim to advance access to personalized
investment advice and institutionally priced investment options in
the IRA space. Every account holder should have access to not only
a professionally built investment portfolio, but also one highly
configured to their specific needs and objectives."
This service uses the same platform that powers Morningstar
Retirement's traditional managed accounts service, which today
brings personalized investment and savings advice to more than 2
million participants in employer-sponsored retirement plans. This
latest managed account offering allows for Envestnet to develop the
fund-level models that serve as the bedrock for the
portfolio-building process within the IRA service.
"This service is a very powerful collaboration that we believe
will give asset managers, broker-dealers, recordkeepers, and
advisors options to shift the growing cost of administering their
IRA programs to a private-labeled offering, while still retaining
their existing revenue streams," said Sean
Murray, Head of Envestnet Workplace Solutions. "It is a win
for investors. It is a win for asset managers. And it is a win for
the wealth and retirement industry."
The managed IRA solution enables Envestnet to develop model
portfolios based on an asset manager's underlying proprietary funds
and delivered through Morningstar Retirement's managed accounts
service.
About Morningstar Retirement
The Morningstar Retirement group within Morningstar Investment
Management LLC, a subsidiary of Morningstar, Inc., and a registered
investment adviser, offers products designed to help individuals
reach their retirement goals. Our products and services also enable
industry players to differentiate their services, stay competitive,
and reach new markets. We provide some of the industry's leading
off-the-shelf offerings and can collaborate with our clients to
design new products from the ground up using our unique data
integrations, distribution networks, investment expertise, and
methodologies.
About Envestnet
Envestnet is transforming the way
financial advice is delivered through an ecosystem of technology,
solutions, and intelligence. By establishing the connections
between people's daily financial decisions and long-term financial
goals, Envestnet empowers them to make better sense of their
finances and live an Intelligent Financial Life™. With more than
$5.4 trillion in platform assets—more
than 107,000 advisors, 16 of the 20 largest U.S. banks, 47 of the
50 largest wealth management and brokerage firms, more than 500 of
the largest RIAs, and thousands of companies, depend on Envestnet
technology and services to help drive better outcomes for their
businesses and for their clients.
Envestnet refers to the family of operating subsidiaries of the
public holding company, Envestnet, Inc. (NYSE: ENV). For more
information, please visit www.envestnet.com, and follow us on
LinkedIn and X (@ENVintel).
About IRALOGIX
IRALOGIX™ is reshaping the landscape of
the $13 trillion IRA marketplace
through its state-of-the-art wealth management technology. This
innovative platform offers fully paperless, white-label IRA
record-keeping solutions, allowing financial institutions to
customize their IRA offerings seamlessly. With the flexibility to
compete effectively across all segments of the IRA market,
regardless of account size. Institutional clients have the freedom
to utilize their internal investments and advisory capabilities or
opt for top-tier industry providers. By integrating with your
market strategy, IRALOGIX streamlines IRA services, empowering
business expansion profitably. Explore more about their offerings
at www.iralogix.com.
About Broadridge
Broadridge Financial Solutions (NYSE:
BR), a global Fintech leader with over $6
billion in revenues, provides the critical infrastructure
that powers investing, corporate governance, and communications to
enable better financial lives. We deliver technology-driven
solutions that drive business transformation for banks,
broker-dealers, asset and wealth managers and public companies.
Broadridge's infrastructure serves as a global communications hub
enabling corporate governance by linking thousands of public
companies and mutual funds to tens of millions of individual and
institutional investors around the world. Our technology and
operations platforms underpin the daily trading of more than
$10 trillion of equities, fixed
income and other securities globally. A certified Great Place to
Work®, Broadridge is part of the S&P 500® Index, employing
over 14,000 associates in 21 countries.
For more information about us, please visit
www.broadridge.com.
Envestnet is separate from and not affiliated with either
Morningstar, Broadridge, or IRALOGIX. This material should not be
construed as a recommendation or endorsement of any particular
product, service, individual or firm.
This release refers to products or services that may be in
development and not yet available. Accordingly, nothing herein
should be construed as a representation or legal agreement by
Envestnet to make available specific products or services
(including, without limitation, concepts, systems or
techniques.)
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SOURCE Envestnet