Envestnet Earnings Call Nuggets: Adding Advisors and Low Market Volatility

Envestnet, Inc. (NYSE:ENV) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Adding Advisors

Alex Kramm – UBS: Maybe just start, you talked about the priorities and adding existing advisors and enterprises. Can you maybe just flush this out a little bit more of where you’ve seen the most success in adding advisors recently and what kind of like the priorities are in that and going into next year? I mean, I think – I remember a couple of years ago you were talking big about like going downstream to some of the smaller RIAs. Are you seeing a lot of joiners in these large organizations and converting those, or is it coming from a lot of new – I guess, new accounts that you’re adding? So, maybe just a little bit more of, like, where you’ve seen the most success in terms of the sales force of getting new advisors on the platform.

Judson Bergman – Chairman and CEO: So, first of all, in an environment where the overall number of advisors is declining, it’s coming – there is a continued market shift away from wire houses and towards independence. The fastest growing segments of the investment advisor marketplace are duly registered advisors and RIA or Registered Investment Advisors. So, we are focused on where the growth is. We are also focused on supporting the enterprises that we have and in gaining new enterprises. So, the growth is consistent with the growth of the industry. We’re growing our high end advisory firms. We’re growing our mid-sized advisory firms and we’re also taking on advisors who are transitioning from commission-based practices, brokerage based practices to fee-based practices. We are getting growth, meaningful growth and advisors in all of those segments. The growth in advisors comes from both new firms and also from going deeper with enterprises that we are currently serving and we track all of these and we well roll up into a single number, but we are gaining growth in all the relevant segments of this marketplace.

Alex Kramm – UBS: Maybe just a little bit more specific, on the conversion side. I think your comment Jud was the meaningful conversions again this year. So, given the number that you’ve put out. The strong numbers we put out this year I think was $10 billion in asset price and I think license was a bit more than that? I mean, what does meaningful mean, I mean can you be a little bit more specific and maybe even talk about it’s a lumpy when – how the pipeline is looking very near term and throughout the year?