BofA sharpens Merrill Edge, adds managed accounts

Bank of America Corp. is offering actively managed portfolios to clients with as little as $20,000 to invest for a fee of 1% of assets. The bank announced that customers on the Merrill Edge platform can choose from 10 different portfolios, ranging from conservative to aggressive. The portfolios will invest in mutual funds and exchange-traded funds “generally invested in stocks, bonds and international investment products,” according to a company statement. “This is an outstanding opportunity for emerging investors to gain access to a portfolio managed by Merrill Lynch investment professionals,” Merrill Edge product executive Tom Halloran said in the statement. Merrill Lynch launched the Edge platform in mid-2010 for self-directed investors, pitching the offering as a way for customers to manage their investments, bank and credit accounts, and retirement assets on a single platform. Customers can handle their accounts online or pay an additional $125 fee to gain access to advice from a “financial solutions advisor” on the phone or in bank branches. The division had assets of $67 billion at the end of the fourth quarter. The bank's move to offer low-cost managed accounts mirrors moves by other online brokers to provide self-directed investors with more advice and investment management options. Fidelity Brokerage Services LLC, for example, will manage customer assets for as little as 25 basis points, depending on the size of the account and whether the investor uses Fidelity funds in the portfolio. The ten different portfolios being offered by Merrill are designed to fit with investors' appetite for risk, investment time horizon, liquidity needs and financial goals. “Customers will have choices in how they invest depending on their individual goals,” Mr. Halloran said.