AD CAMPAIGN GETS OFF BIG, WITH A HAND FROM CLINTON: IM&R DEBUTS COMMERCIAL, ANNOUNCES PAYOUT HIKE

One man’s crisis is another’s opportunity.

The day that M. Anthony Greene’s firm, Investment Management & Research Inc., began an advertising campaign on CNN, the story of President Bill Clinton’s sex scandal broke. Talk about dumb luck — for Mr. Greene, anyway.

“I called CNN and they said viewership was up 40%,” he guffaws.

IM&R, an Atlanta, Ga.-based brokerage where Mr. Greene is president, has launched a television advertising campaign as part of an effort to increase awareness of his firm among investors and financial advisers. With so many brokerages and financial services firms fighting for air time these days, IM&R will need all the help it can get.

The ads come as IM&R makes other changes to attract new brokers. The firm is adding a new payout scheme for advisers, and it has beefed up its recruiting efforts. Plus, its parent company, Raymond James Financial Inc. of St. Petersburg, Fla., plans to provide mutual fund research data to IM&R clients as well as the clients of Raymond James’ other broker-dealer subsidiaries. Previously, this research was for brokers’ eyes only.

“We have not been as aggressive as others in attracting advisers,” Mr. Greene says.

The ad campaign, on which IM&R is spending $850,000 annually, officially began a year ago when the firm bought spots on National Public Radio. This year, the firm purchased time on CNN and CNNfn as well, Mr. Greene said. IM&R, which serves 1,400 independent contractors in 550 offices across the country, lacks brand recognition despite its 24-year history. Attaining brand status “will take a number of years,” Mr. Greene acknowledges.

In addition to the ad campaign, IM&R has added a new payout structure for its advisers. They can now get 90% of the revenues they generate but have to pay for their own transactions. Alternatively, they can stay with the current structure where they receive 82% of revenues, free of transaction charges. Mr. Greene is responding to a growing trend among advisers who want a hig
her payout, because they don’t make a lot of transactions.

The various efforts by IM&R, “speaks to the potential of the independent adviser market for Raymond James,” says Michael Flanagan, an analyst at Philadelphia-based Financial Service Analytics Inc.

Furthermore, IM&R and Robert Thomas Securities Inc., another Raymond James subsidiary that caters to independent advisers, have embarked on a joint recruiting effort. Previously, they competed for advisers, but have consolidated recruiting under IM&R’s purview.

Finally, IM&R clients will start getting Raymond James’ buy and sell recommendations on funds, formerly used only internally.