Ranking the Custom Portfolios Providers

by Neil Katkov, PhD, May 30, 2002

Abstract

Boston, MA, USA May 30, 2002

In a new report, Celent profiles 10 financial institutions and technology vendors that are providing new, innovative online portfolio services and technologies.

Leading firms in three segments of the custom portfolios market are presented: fractional shares services, which allow investors with few or no assets to make recurring, dollar-based investments; folios, which provide automated diversified portfolios to the mass market (investors with under US$100,000 in investable assets); and online wraps, which provide online managed accounts to the mass affluent (over US$100,000 in investable assets). The report also includes a detailed comparison of the target markets, distribution channels, and features of these providers.

The firms covered in the report are BuyandHold, EnvestnetPMC, E*Trade, Fidelity Investments, Foliofn, MyStockFund Securities, Oberon Financial Technology, Separate Accounts Solutions, ShareBuilder and WrapManager.

According to Neil Katkov, author of the report, "New technologies are enabling great efficiencies in managing investment portfolios, making it possible for brokerages and financial advisors to offer portfolio services at much lower investment thresholds than traditionally. We expect that the custom portfolios market will continue to expand, particularly through institutional distribution channels."

A Table of Contents is available online.

Ranking

Folios

Fractional Shares

Online Wraps

1

Foliofn

ShareBuilder

Oberon Financial Technology

2

E*Trade Stock Baskets

BuyandHold

EnvestnetPMC

of Celent Communications' Institutional and Retail Securities & Investments research services can download the report electronically by clicking on the icon to the left.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA May 30, 2002

Ranking the Custom  Portfolios Providers

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 6
SERVICE PROVIDERS 12
FOLIOS 12
  E*Trade Stock Baskets 12
  Fidelity Investments 13
  Foliofn 14
FRACTIONAL SHARES 17
  BuyandHold 18
  MyStockFund Securities 19
  ShareBuilder 20
ONLINE WRAPS 21
  EnvestnetPMC 22
  E*Trade Personal Money Management 23
  Oberon Financial Technology 24
  Separate Accounts Solutions 25
  WrapManager 27
SERVICE COMPARISON 29
  Comparative Tables 30
  The Ranking 38
FUTURE TRENDS 40

 

        

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