Envestnet | Tamarac has completely redesigned its Advisor Xi platform, fully integrating the Tamarac capabilities. The new platform, called Tamarac, includes enhancements to its suite of portfolio management, reporting, trading, rebalancing, client portal, onboarding and customer relationship management software. The platform is modular, meaning registered investment advisors can license the specific software they need for reporting, trading and CRM, with the option to add components as needed. It is also an open platform, allowing for integration with multiple fintech partners. “Our priority over the past 18 months has been to create a platform that makes it easier for advisors to position themselves for success,” said Stuart DePina, president of Envestnet | Tamarac. “The Tamarac platform has been completely re-engineered to provide a streamlined process for advisors to engage their clients at every stage of their relationship, from prospect to achievement of short- and long-term goals.” Envestnet | Tamarac has more than 900 firm clients, who manage more than $900 billion in assets in more than two million accounts.
The Mainstay MarketField fund went from a gargantuan $21 billion assets under management in 2014 to just around $500 million today, and therein is a cautionary tale for the whole genre of liquid alternatives. As Morningstar’s Russ Kinnel points out, overselling the promises of liquid alts has been problematic for asset managers and advisors alike. These mutual funds use investment strategies borrowed from the hedge fund world to try and provide a non-correlated ballast to a broader portfolio. But consistent underperformance means investors have pulled out. MarketField is not alone, Kinnel says: “The 30 largest alternative funds as of February 2014 had $121 billion in assets; today, those same 30 have $74 billion, and three no longer exist.” Why the exit? A continued bull market in equities, unkind to non-correlated strategies, likely shares some blame, but so do high fees, overly complex strategies and an implicit belief that while the funds may not keep up with the market on the upside, they won’t lose money (not true). Investors looking for liquid alts should look for low fees, good management and a clear process, Kinnel says. Alternatively, short and intermediate term bond funds can play the same role for far less money.
Olden Lane Securities and AXIO Financial are forming a distribution partnership. Olden Lane is known for its outcome-oriented Unit Investment Trusts and AXIO offers distribution to financial adviors. AXIO will begin distributing Olden Lane’s Target Outcome Funds to independent borker/dealers, wirehouses and registered independent advisor channels. Olden Lane Securities CEO Michel Serieyssol said a combination of AXIOS technology, personnel and experience educating advisors made it an effective distribution partner.