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Fidelity to Roll Out New Managed Accounts Platform

By Alex Padalka June 10, 2019

In a bid to attract financial advisors, Fidelity Institutional is rolling out a new managed account platform in 2020, the company says.

Fidelity Managed Account Xchange, or FMAX, will include the company’s own investment products and those from outside asset managers, as well as a variety of advisor tools, programs and services, the company says in a press release.

The open-architecture platform will integrate with Fidelity’s advisor technology platform Wealthscape as well as eMoney Advisor and Envestnet, the company says.

The platform is aimed at broker-dealer firms, RIAs and family offices as Fidelity hopes to tap into the managed account space, according to the press release. Assets in managed accounts reached $5.7 trillion in the second quarter of 2017 and are expected to reach $8.1 trillion by 2020, the company says, citing data from research firm Cerulli Associates.

“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,” Anthony Rochte, head of Fidelity Institutional’s investments and technology group, says in the press release. “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.”

Luring advisors has been part of Fidelity’s broader strategy this year. In April, the company added third-party vendors Addepar and Wealthbox to Wealthscape, effectively expanding the offerings advisors can offer to clients, as reported.

Fidelity is also making moves to lure retail investors directly. Earlier this month, the company announced that it would add close to 150 more ETFs to its growing list of commission-free funds.