Envestnet is teaming up with State Street Global Advisors and BlackRock to bring new direct indexing and custom model portfolio options, respectively, to its unified managed account platform, the firms announced Wednesday at Envestnet’s Elevate 2025 conference.
The direct indexing portfolios, which have account minimums of $100,000, will give advisors and investors more than 100 ways to customize them and will feature optional tax overlay services, the firms said in a statement.
The new SSGA Global Equity Direct Index Portfolio and SSGA U.S. Large Cap Quality Direct Index Portfolio include actively and passively managed direct indexing strategies. They are offered in partnership with Envestnet's in-house investment team, QRG Capital Management.
"Historically, direct indexing has been costly and cumbersome to implement, limiting most investors' ability to take advantage of its potential benefits," Allison Bonds Mazza, senior managing director and head of intermediary at State Street Global Advisors, said in the statement.
"However, the combination of the desire to personalize portfolios at scale and technological innovation has made it possible to bring direct indexing to investors of all sizes," she added.
BlackRock Model Portfolios
The new model portfolios provides RIAs with streamlined access to BlackRock's custom model capabilities, according to the firms. The portfolios include ETFs and mutual funds, and the firms expect to add access to separately managed accounts, private markets and other alternatives.
“This enhanced offering provides advisors and their clients with access to institutional-quality portfolios, enables more strategic and personalized advisor relationships and financial planning,” the firms said in the statement, pointing to Envestnet research showing firms that allocate more than 75% of their practice to model portfolios consistently achieve higher valuations.
The custom model offering expands a collaboration between Envestnet and BlackRock on personalized high-net-worth solutions.
Model portfolios from BlackRock, the world’s largest asset manager, hold about $300 billion in assets globally, and the firm expects managed model portfolio assets to double to $10 trillion over the next four years.
Bain Capital closed its $4.5 billion acquisition of Envestnet in November. BlackRock and State Street are minority stakeholders.
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