Envestnet is partnering with SIMON Markets LLC (SIMON) to offer access to, and the management of structured investments that can provide income and protection strategies for client portfolios. Envestnet’s integration plan will make it possible for financial advisors utilizing Envestnet’s financial wellness ecosystem and unified managed account (UMA) platform to offer structured investments as fee-based solutions—and seamlessly manage these products across their lifecycle using analytics, education, and portfolio allocation tools from SIMON.
“With income and protection becoming even more critical for a diversified portfolio, we continue to forge ties with partners who can bring advisors greater access to these types of investment strategies,” said Tom Sipp, Group Head of Envestnet Solutions. “SIMON’s innovative technology and analytics simplifies accessibility and the facilitation of complex structured investments, annuities, and other income and protection products for advisors and their clients’ portfolios—empowering the Envestnet ecosystem to help more people experience an intelligently connected financial life.”
The integrations between Envestnet and SIMON will give advisors the capability to place structured investments in UMAs, which are a key component of many broker-dealers’ fee-based businesses.
“Advisors make a lot of decisions for their clients every day, and in a very complementary way, SIMON and Envestnet are focused on making it easier for advisors to help clients reach their goals,” said Jason Broder, CEO of SIMON. “Envestnet’s extensive suite of tools gives advisors a clear 360-degree view of client finances. We’re bringing structured investments to an advisor’s suite of fee-based solutions for the first time, with powerful portfolio construction analytics designed to help reach a client’s investment objectives.”
The SIMON Spectrum portfolio allocation analytics feature is designed to help advisors assess whether or not structured investments and annuity products could help align clients’ investment objectives to achieve their financial goals. This capability will be integrated into Envestnet’s proposal generation tool—enabling advisors to include structured investments in model portfolios. SIMON Spectrum conducts analysis on alternative solutions such as structured investments and annuities using five criteria: protection, upside, liquidity, simplicity, and history.
In addition to allowing advisors to incorporate structured investments into proposals, Envestnet’s integration with SIMON will:
- Make it possible to seamlessly go from proposal to implementation and execution through SIMON’s platform and order entry tools. SIMON offers access to—and analytical features for evaluating—structured investment, annuity, and defined outcome exchange-traded fund (ETF) solutions.
- Deliver all post-trade data in real time, enabling advisors to actively manage their structured investment books of business in one centralized location, including integrating SIMON’s structured investment data to include in client reporting.
- Offer multimedia educational resources to help advisors and their clients better understand structured investment products, such as:
- A growing library of 90+ educational videos.
- On-demand, comprehensive asset class education for all advisor experience levels.
- Customized compliance-tracking and supervisory tools to help advisors navigate self-paced certification requirements and deliver real-time oversight for home offices.
In addition, SIMON’s tools and analytics will be integrated in workflows within:
- Envestnet | MoneyGuide: A block dedicated to structured investments will be included within MyBlocks™ for advisors to introduce clients to these products. The integration will later expand to incorporate structured investments in financial plans and connect the plans to the Envestnet proposal workflow.
- Envestnet | Tamarac: Registered investment advisers (RIAs) that rely on Tamarac will receive single-sign-on (SSO) access to SIMON and incorporate structured investment data from SIMON into Tamarac reports.
To learn more about the SIMON solutions to be implemented within the Envestnet ecosystem and workflows throughout 2022, please visit https://simon.io/solutions/.
