NewEdge Capital Group has expanded its partnership with Envestnet to make NewEdge Investment Solutions’ structured note strategies available through unified managed accounts.
Financial advisors can now incorporate NewEdge’s Structured Note Income Portfolio and Structured Note Advisory Portfolio alongside other investment strategies within a single client account on Envestnet’s platform.
The two strategies, known as SNIP and SNAP, were among the first structured note separately managed accounts offered through Envestnet. Together, the solutions oversee more than $800 million in assets.
A unified managed account allows multiple investment strategies, asset classes and managers to be held within one account. The structure can simplify administration, reporting, tax management and portfolio oversight compared with maintaining separate accounts for each strategy.
Through the expanded arrangement, advisors can combine SNIP or SNAP with traditional equity, fixed-income and alternative investment strategies while managing the overall portfolio through a single account.
Structured notes are debt securities whose returns are linked to the performance of an underlying asset, such as a stock index, individual security, interest rate or basket of investments. Depending on their terms, they can provide income, downside protection or enhanced return potential, but they also carry issuer credit, liquidity and market risks.
NewEdge introduced SNIP and SNAP in 2021. The strategies seek to provide consistent portfolio returns and a degree of downside protection while addressing some of the complexity and risks associated with selecting and managing individual structured notes.
The company said adding the strategies to Envestnet’s UMA framework can help wealth managers deploy separately managed accounts and alternative investments more efficiently across a larger number of clients.
In addition to Envestnet, the structured note solutions are available through multiple custodians and investment platforms, including Dynasty and SMArtX.
NewEdge Investment Solutions was launched in 2023 to give independent financial professionals and institutions access to investment strategies used by NewEdge Wealth for its ultra-high-net-worth clients.
A team of four chartered financial analysts oversees approximately $5 billion in assets across the broader NewEdge Investment Solutions platform. Its strategies are designed to comply with Global Investment Performance Standards, which provide a standardized framework for calculating and presenting investment performance.
NewEdge Investment Solutions operates within NewEdge Wealth, a registered investment advisor serving ultra-high-net-worth and high-net-worth families, family offices and institutions.
NewEdge Wealth and NewEdge Advisors comprise NewEdge Capital Group, which supports more than 475 financial advisors serving several thousand households, institutions and family offices.
Envestnet provides technology, investment products, data and support services to financial advisors, banks, brokerages, wealth managers and registered investment advisors. The company has approximately $7 trillion in platform assets and serves more than one-third of U.S. financial advisors.
KEY QUOTE:
“Our financial advisors need simple solutions to meet the complex wealth management needs of their clients, and this is one way to streamline investment strategies.”
“Research shows the adoption of SMAs and alternatives continues to be a focus for many firms, and UMAs enable their use in a more scalable manner.”
Michaelangelo Dooley, Structured Note Strategies Portfolio Manager at NewEdge
