Raymond James offers alts to RIAs

The beefing up of Raymond James' RIA business continues as affiliated RIAs will have access to the firm's alternative investment platform beginning in September.
OCT 23, 2013
By  DJAMIESON
In an effort to provide a broader array of alternative investments to its advisers, RIAs affiliated with Raymond James Financial Inc.'s investment adviser division will be able to access the firm's alternative investment platform beginning in September. The Raymond James Alternative Investment Group offers research and support for private equity, private real estate, hedge funds, managed futures and alternative mutual funds, the company said. It has 22 professionals reviewing products targeted at higher-net-worth clients, Raymond James said in a release issued today. Pricing on a “very large percentage” of alternative products had to be tweaked for RIAs, said Bill Van Law, the division's president. “Most of the [alternative] products were designed for the broker-dealer world, not the advisory world,” he said. “What we've done is taken an excess amount of fees and commissions, and paid the balance back to clients. So we've created a structure that works well for advisers.” “On the surface, it looks great,” said Scott Stoltenberg, a partner at Quad Cities Investment Group LLC, which holds assets in custody at the division. “The more things you can do at one [custodian], the better,” he said. Raymond James held a conference call yesterday with its registered investment advisers to discuss the announcement. Adding alternatives is the latest effort by Raymond James to beef up its RIA platform. The firm said it has recently introduced more support services for RIAs, covering areas such as practice management, marketing and succession planning. In July, the investment adviser division added four new regional directors to help recruit and coach existing practices. Last fall, it cut equity ticket charges and waived some individual retirement account fees paid by clients of its RIA firms in an effort to better compete with the larger RIA custodians. The division, which serves about 100 RIA firms with $8 billion in assets, has long been overshadowed by Raymond James' much larger employee and independent-contractor channels. In early 2012, the firm reorganized the custody unit as a stand-alone division, separating it from its independent-contractor business. Mr. Van Law, then the head of recruiting at the company's independent broker-dealer, Raymond James Financial Services Inc., was put in charge of the division. Raymond James plans a media campaign beginning next month to get the word out about its RIA custody service, as well as options for hybrid advisers.

Latest News

Vanguard scores strategic wins with latest fee cuts
Vanguard scores strategic wins with latest fee cuts

The Pennsylvania-based fund giant stands to gain ground against rivals such as BlackRock while earning more goodwill from retail investors.

Duke’s Cam Harvey pegs cost of portfolio rebalancing at $16B
Duke’s Cam Harvey pegs cost of portfolio rebalancing at $16B

Research finds mechanical shifts in exposures have given an edge to hedge funds and other speculators, leading to steep costs for pension funds.

Empower extends health services for retirement plan clients
Empower extends health services for retirement plan clients

With a new suite of health and benefit services, the company has moved well beyond its beginnings as a retirement plan record keeper.

Altfest's president explains how advisors can use AI to their advantage
Altfest's president explains how advisors can use AI to their advantage

Using AI for tax and estate planning will enable advisors to spend more time with clients, Andrew Altfest says.

Mess with pay, and advisors walk
Mess with pay, and advisors walk

UBS is looking to boost the firm’s bottom line even as some financial advisors search for greener pastures.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.