$900 million UBS breakaway team forms new firm, joins Dynasty

Jonathan Blau founds Fusion Family Wealth with four team members

Nov 12, 2013 @ 1:26 pm

By Joyce Hanson

A team of five UBS AG advisers said Tuesday that they have left the wirehouse brokerage firm to form an independent investment advisory firm, Fusion Family Wealth, and have joined Dynasty Financial Partners' platform of wealth management services and technology.

Led by firm founder Jonathan Blau, a former UBS senior vice president, Fusion's team members started their new firm over the Veterans Day holiday after exiting UBS last week.

The $900 million wealth management team has already spoken to many clients, and they are “favorably inclined” toward moving to the new firm from UBS, Mr. Blau said.

(Advisers still leaving wirehouses but there's no exodus)

He declined, however, to characterize Fusion's team as breakaway brokers.

“I like to consider myself an independent registered investment adviser,” Mr. Blau said.

“I wasn't running from something,” he said. “I was running to something.”

With offices in both New York and on Long Island, Fusion Family Wealth comprises Mr. Blau, along with managing director Harvey Radler, senior wealth advisers Jeffrey Blick and Joel Bodner, and senior client service specialist James Cloudman. All are joining from UBS.

Although the new firm is in its “nascent stages,” the five UBS team members, who had worked together for the past 10 years, “always had an eye toward adopting an independent model,” Mr. Blau said.

(Track the latest in recruiting from InvestmentNews' Advisers on the Move database)

Fusion's professionals want to offer a high legal and fiduciary standard, which is why they were attracted to Dynasty's open-architecture platform, he said.

The partnership lets Fusion work with large accounting and law firms and thus handle a wide range of client needs using Dynasty's customized platform. The platform includes proprietary research from Callan Associates and Wilshire Associates as well as Envestnet's portfolio tools and reporting technology.

Fidelity Institutional Wealth Services will provide clearing and custody services.

In starting up Fusion, Mr. Blau looks forward to using behavioral finance when working with clients.

Research shows that emotion and psychology adversely influence investor's financial decisions, he said, pointing to such maxims as “sell in May and go away,” which can prevent clients from achieving their goals.

“I work with my clients on viewing investing from a more rational perspective,” Mr. Blau said.

0
Comments

What do you think?

View comments

Recommended for you

Advisers on the Move

Featured video

Events

Big trends in RIA acquisition

Consolidation is continuing. Acquisitions and mergers are on the rise. Is there an AUM threshold that advisers need to reach for a practice to be viable? Captrust's Rush Benton offers some perspective.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print