To address the growing demand and interest in alternative investments, Envestnet announced the launch of professionally managed model portfolios featuring interval funds on its WealthTech platform. The launch marks a significant milestone in Envestnet's mission to broaden seamless advisor access to alternative investments. Available through Envestnet's Strategist UMA (unified managed account) and Fund Strategist programs, these new offerings deliver institutional-grade solutions at scale to advisors and their clients.
"As public markets continue to shrink and private markets drive innovation, advisors require a broader toolkit to deliver diversified, modern portfolios, and the alternatives their high-net-worth clients are asking for," said Dana D'Auria, Co-CIO and Group President of Envestnet Solutions at Envestnet. "These new models integrate semi-liquid and liquid strategies, enabling seamless allocation to alternatives with point-and-click simplicity."
Manager Models from BlackRock and Franklin Templeton
Envestnet is launching two models from Franklin Templeton and BlackRock in 2025, with additional models from Fidelity Investments and State Street targeted to be available in 2026.
Franklin Templeton Multi-Manager HNW Portfolios
Built on a Strategist UMA framework with five risk-based options ranging from Conservative to Aggressive, each portfolio incorporates a strategic 10% allocation to alternatives. In addition to enhanced income potential, the models deliver key advantages: streamlined access to private markets without subscription documents and simplified tax reporting. These features directly address common challenges faced by advisors, making the solution both powerful and practical.
BlackRock Multi-Asset Income with Private Markets Models
Designed as Fund Strategist Portfolios with $25,000 minimums to reach a broad base of clients, these models leverage a broad opportunity set, blending public and private credit, covered call strategies, and dividend-focused equities across three risk-based allocations – 40/60, 60/40, and 80/20. Key benefits beyond enhanced income potential include flexible liquidity, access to private markets without requiring subscription documents and simplified tax reporting – all of which address major pain points for advisors.
Operational Considerations for Limited Trade Window (LTW) Funds
As advisors consider these options, Envestnet has outlined important operational protocols for advisors and service teams, including:
- Observing redemption windows to avoid trade locks
- Fund gating impact on redemption requests
- Rebalancing and tax-loss harvesting being limited to open trade windows
- Advisors managing liquidation responsibilities during account termination
"This launch builds on the work we've done to expand alternative investment capabilities on our WealthTech platform, in collaboration with leading asset managers Franklin Templeton, BlackRock, Fidelity Investments, and State Street," said Erik Preus, Group Head of Investment Management at Envestnet. "With more than half of alternatives held by high-net-worth and affluent investors – and advisor allocations to these products only expected to increase – providing expanded capabilities and access on our platform is critical as advisors construct portfolios that meet their HNW clients' needs.1"
To enable LTW fund capabilities, wealth management firms must sign an agreement with Envestnet. For more information about new Interval Fund availability on Envestnet's platform, please contact your Envestnet representative.
