06.06.2019

Fidelity Institutional Preps New Wealth Management Platform

Fidelity® Institutional today announced that it will launch Fidelity Managed Account XchangeSM (FMAX), a comprehensive wealth management platform that will consist of advisory tools, programs and services, and investments products from Fidelity and other leading asset managers.

“There’s been a clear shift in demand toward both planning-led experiences and fee-based business models, and managed accounts can help advisors deliver on both”
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As the demand for managed accounts grows rapidly, with $5.7 trillion in AUM in Q2 2017 and projections to hit $8.1 trillion by 2020,1 Fidelity is expanding its offering in this space to help meet the evolving needs of wealth management firms – from registered investment advisors to broker-dealer firms to family offices – and their clients.

“There’s been a clear shift in demand toward both planning-led experiences and fee-based business models, and managed accounts can help advisors deliver on both,” said Anthony Rochte, head of Fidelity Institutional’s Investments and Technology Group. “Fidelity is building on our significant experience and proven success in the managed accounts space with this new offering, which should make it easier for advisors to efficiently access and manage a range of investment solutions from both Fidelity and third-party providers.”

Streamlined, End-to-End Solution Delivered through Leading FinTech Capabilities

FMAX is expected to begin rolling out in 2020 and will enable advisors to develop and deliver advisory solutions to their clients. The platform will offer distinct end-to-end advisory capabilities and leverage deep integrations between WealthscapeSM, eMoney Advisor, LLC and Envestnet, enabling advisors to plan, propose, invest and report in one streamlined workflow.

FMAX will offer advisors the ability to guide their clients through every life stage, beginning with their first investing experience and continuing through when they have potentially accumulated more wealth.

Advisors will be able to offer clients a full continuum of service, ranging from digital to full-service, and personalize their offerings based on their capabilities and preferences. Over time, the platform is expected to also offer the flexibility to support both planning-oriented and non-planning managed account users, with digital services offered through Fidelity Automated Managed Platform (AMP), Fidelity’s award-winning, planning-led digital advice solution co-developed with eMoney.

Leading Investment Solutions

FMAX is open architecture and is expected to offer a combination of proprietary Fidelity managed account and model portfolio solutions, as well as solutions from leading third-party strategists and product providers. Existing Fidelity models and future offerings are expected to be accessible through FMAX. It will also offer Fidelity’s advisory support and consulting capabilities.

“Investors are increasingly looking to their advisors for holistic planning, and Fidelity will help them provide that through the combined power of FMAX with industry-leading planning, managed account technology and brokerage integrations,” said Gary Gallagher, head of Investment and Managed Solutions for Fidelity Institutional. “The platform will make it easier for advisors to work with a range of managed account solutions, streamlining the money management function and freeing advisors up to spend more time and energy on financial planning and other value-adds for their clients.”

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