Fidelity Investments has introduced two technology offerings this week geared for smaller advisory firms looking to either launch or grow their business.
The first is an all-in-one bundle that includes Fidelity’s brokerage platform, Wealthscape, along with the financial planning capabilities of eMoney and Advyzon’s suite of operational and portfolio management software, according to Noni Robinson, head of Emerging RIA at Fidelity Institutional Wealth Management Services, a division of Fidelity Investments.
For those firms that are already established but looking to grow, the Boston-based firm also introduced an advisory bundle that includes Wealthscape and eMoney. Along with those, it offers Fidelity Managed Account Xchange Essentials (FMAX Essentials), a streamlined version of Fidelity Institutional Wealth Adviser’s larger-scale customizable advisory offering, FMAX.
FMAX Essentials provides clients with end-to-end wealth advisory capabilities complete with a reduced investment lineup that includes both Fidelity and third-party products. It offers about 25% of the investment vehicles Fidelity offers on the full FMAX version for a reduced cost. FMAX Essentials does not include stocks, bonds or options, according to Robinson.
“It’s really to address some of the common pain points for those smaller advisors, which is resources and cost,” Robinson said in an interview. “It’s really to support their growth and share of wallet and reduce some of the research it takes to explore technology stacks and bring together a solution with very good integrations and help them grow.”
Fidelity released the two technology-heavy products to smaller firms because they lack the necessary resources to take advantage of such offerings. Fidelity wanted to offer a package at a reduced rate so advisors could take advantage. The firm is looking to target smaller advisory firms with no more than $250 million in assets under management and midsize firms with about $250 million to $500 million, the firm said.
“We realized more recently that we have the ability, the scale, the resources [and] the expertise to put a greater focus and really help smaller and midsized firms grow,” Robinson said.
Fidelity’s advisors can access the products directly through the providers with Fidelity facilitating the introductions between the two sides. Since the service providers are working through Fidelity, they can offer advisors a reduced cost. For instance, advisors will receive discounts of up to 10% on eMoney and 20% on Advyzon, Robinson said.