Envestnet Unveils Enhancements to Its Unified Managed Account

Advisors can build customized UMA models using 27 asset classes and manage multiple client accounts following each model

CHICAGO--(BUSINESS WIRE)-- Today, Envestnet announces enhancements to its Unified Managed Account (UMA) that enable advisors with the ability to build customized UMA models and to choose from more than 1,200 investment products to populate the asset classes. Advisors now have the ability to fine tune their own UMA models to meet the needs of their clients for multi-million dollar accounts as well as for accounts as low as $150,000.

Key features of the UMA are:

    --  Access to over 1,200 investment options including mutual funds, ETFs and
        over 200 SMA portfolios
    --  Advisor-created asset allocations from 27 asset classes
    --  Ability to manage multiple client accounts by utilizing a single UMA
        model with Envestnet performing all account-level trading
    --  Account-level customization through the application of socially
        responsible investing screens, tax-sensitive management, and systematic
        income withdrawals
    --  Simplified account opening process since the UMA is implemented in a
        single brokerage account
    --  Comprehensive performance reporting including sleeve-level performance
        reports

Unified Managed Accounts are one of the fastest growing investment vehicles in the industry today. By 2013, approximately $327 billion in client household assets will be managed through UMAs.¹

"It's about control, convenience and performance," says John Harris, National Sales Manager for Envestnet. "Advisors want to have the option to create custom asset allocations for their clients without the administrative overhead that can be associated with a traditional separately managed account program. With only one registration and one 1099 form, the Envestnet UMA eliminates the need for multiple sets of paperwork."

As the overlay manager for the UMA, Envestnet handles all trading and rebalancing activity. This includes ongoing "frictionless" rebalancing of accounts using the inherent trading activity within the sleeve-level SMA portfolios used in the UMA. As a result, the Envestnet UMA delivers great efficiencies to advisors by allowing them to build various UMA models, manage them continuously, and thereby manage all client accounts following the models. No longer does an advisor have to manage and trade each client account individually.

"We've structured our UMA to offer advisors the level of portfolio customization that they desire, especially in today's market environment where proprietary products are taking a back seat," says Jeff Nicholas, SVP, Product Management for Envestnet. "By delivering functionality that will enable them to build custom asset allocation models and marrying them with overlay services that seek to enhance efficiencies in their practice, the advisor now has the ability to effectively manage current client relationships as well as take time to focus on additional asset gathering."

The investment products available through the Envestnet UMA include separate accounts, mutual funds and ETFs. A portion of these products have passed a rigorous due diligence process and are regularly monitored by PMC, the investment consultancy arm of Envestnet.

For more information about the Envestnet UMA, visit www.envestnet.com/UMA.

This press release contains no investment advice or recommendations and is provided for informational purposes only. Any investment is subject to risk. The asset classes and/or investment strategies described may not be suitable for all investors and investors should first consult with an investment advisor before investing. Investment decisions should be made based on the investor's specific financial needs and objectives, goals, time horizon, tax liability and risk tolerance. Neither Envestnet nor its representatives render tax, accounting or legal advice. Past performance is not a guarantee of future results.

ABOUT ENVESTNET ASSET MANAGEMENT

Envestnet is an advisor's gateway for expert wealth advisory solutions. Through a unified technology platform, the company offers a broad range of investment products as well as fee-based services and solutions that include extensive reporting capabilities and front-, middle-, and back-office administrative tools to the independent financial advisor.

Envestnet is headquartered in Chicago with offices in Denver, Los Angeles, New York, Silicon Valley and Trivandrum, India. The firm has over $65 billion in total assets served and more than 650,000 investor accounts.*

¹ Source: Celent Report, "Unified Managed Accounts: Developments in UMAs and Overlay Technology to Provide Total Client Solutions," January 5, 2009

* Data includes assets under management and administration and licensing agreements as of 3/31/2009

    Source: Envestnet

Released July 13, 2009