Cetera Financial Group Inc. is launching a mutual fund/ETF advisory program that will give financial advisers in the firm's three broker-dealers access to institutional services and advice from three major money managers.
Wilshire Associates Inc., Sage Advisory Services Ltd. Co. and
UBS Global Asset Management (Americas) Inc. have agreed to manage money from Cetera clients, starting at minimums of as little as $25,000.
“The program will allow advisers and their clients to mix and hold several different investing models in one custodial account,” said Barnaby Grist, executive vice president of wealth management at Cetera.
Coupled with Cetera's Folio Dynamics technology platform, the new program allows advisers and their clients to place funds with one or more of the three distinctly different money managers and quickly dial up or down allocations, he said.
“The underlying technology platform is integrated to the advisers' desktops, giving them the flexibility to rapidly respond to client needs,” Mr. Grist said.
The platform also allows automatic re-balancing in response to movements in the markets.
“It maintains balance automatically and allows the adviser to be the financial quarterback,” Mr. Grist said. “It enables them to focus on their clients' needs and not spend time on mundane tasks.”
According to Mr. Grist, Cetera looked at about 30 different money managers and a dozen tech platforms before deciding on the mix.
Wilshire Associates, known for its skills in investment manager selection, provides the strategic option for long-term mutual fund investments.
Sage Advisory provides a more tactical alternative, specializing in fixed-income investing through exchange-traded funds.
UBS Global Asset Management provides another tactical alternative, focused on global equity allocation.
Mr. Grist said that Cetera's scale — about 4,800 brokers — allowed him to negotiate good pricing on the products. Based on the level of investment, the strategic option can start at 45 basis points and the tactical products at 65 basis points.
Email Andrew Osterland at [email protected]
