There are many reasons advisors may choose to enhance portfolio management by partnering with a third-party investment manager. Sharing responsibilities such as security research, portfolio construction, account monitoring and trade execution enables an advisor the opportunity to spend more time deepening existing client relationships, developing new ones and enhancing services. In addition, advisors may choose to allocate a portion or a niche’ of their clients’ assets where they may not be able to offer in-depth expertise with efficiency.
Rather than simply listing managers and platforms, Advisory Services takes the time to listen to the needs of the advisor and offers consultative insight into appropriate considerations. This means an advisor does not spend countless hours meeting with wholesalers or pouring over options that are unrelated to their business model and needs. Triad offers multiple proven third-party management solutions including: 1) Private Managed Accounts (PMAs), 2) Odyssey and 3) Turnkey Asset Management Platforms. These solutions improve efficiencies, differentiate an advisor’s firm in the marketplace and provide first-class professional asset management for clients.
Private Managed Accounts
Triad chooses PMA managers based on the value they offer to the investor, their ability to support advisors and their differentiating qualities. Each PMA solution available through Triad Advisors is a Strategic Partner, which means there is a true partnership with them, not just a selling agreement on file. Working directly with these PMAs means greater access to the management team and a reduction in expenses versus “turnkey platforms.” This select group of managers offers a variety of styles ranging from niche’ specialists, to classic strategic portfolio management, to tactically managed portfolios. Some manage individual securities, while others utilize mutual funds, ETFs, options, alternative investments or a combination of all of these. Listed below are a few examples of Triad’s unique PMA managers:
- Advisors Asset Management
- Al Frank Asset Management
- Aurora Investment Counsel
- Capstone Asset Management Company
- Horizon Investment Services, LLC
- Innealta Capital
- Ladenburg Thalmann Asset Management
- Lindner Capital Advisors
- Rochdale Investment Management
- Stadion Money Management
Odyssey
Triad collaborated with one of the country’s most respected research and investment firms, Rochdale Investment Management, to develop an asset management assistance system. Odyssey is a robust, flexible and cost-efficient mutual fund modeling tool designed specifically to help advisors meet the needs of the “mid-net-worth” investor. An advisor can choose to use the system’s in-depth client profile or pick an allocation based on their knowledge of the client to select one of 90 different implementation strategies. Odyssey recommends mutual funds to complete the selected allocations (fund selections are also customizable) and monitors the allocations and funds on an ongoing basis. Alerts are sent to the advisor if it is time for a periodic or event-driven rebalance and will, at the advisor’s command, facilitate the necessary trades. With a required account minimum of only $25,000 and low cost of 35bps, this solution allows advisors to provide their clients with a fully diversified, cost efficient, fee-based asset management solution. This program is an ideal way to consolidate directly held mutual fund assets into one convenient brokerage account and receive a reoccurring fee for the ongoing advice provided.
Turnkey Asset Management Platform (TAMP)
An advisor may choose to take advantage of one of Triad’s approved TAMPs such as Managed Account Solutions (MAS). Envestnet, one of the world’s largest third party asset managers, and National Financial Services (Fidelity) collaborated to create MAS. This platform offers fee-based asset management through Separate Managed Accounts (SMA), Multi-Managed Accounts (MMA), Advisor-Directed Unified Managed Accounts (UMA) and Mutual Fund Model portfolios. World class technology generates sophisticated analytical and research reports, client-ready proposals and performance reporting.
MAS provides access to over 600 SMA investment disciplines. An advisor may choose to select individual managers on their own or take advantage of the system’s ability to make recommendations appropriate for each high-net-worth client’s needs. SMAs, managers of individual securities, present tax harvesting advantages over typical mutual fund management. Also, many high-net-worth clients appreciate the “je ne sais quoi” of direct ownership in individual companies.
In MMA and UMA accounts, clients enjoy the benefits of separate account management with the added convenience of consolidating assets into a single account. An MMA or UMA combines multiple separate account managers, along with mutual funds or ETFs, into one account structure. Clients may access these accounts for as little as $250,000 and will receive full diversification, tax harvesting opportunities and individual security ownership. The MMA is managed by an overlay manager, while the UMA provides the advisor asset management control. MAS also offers strategically managed Mutual Fund Model portfolios available for clients with a minimum investment of $50,000.
As a “one stop shop” for asset management, Turnkey platforms such as MAS can help an advisor create front-end client analytics, select investment solutions, manage assets and generate performance and position-specific reporting. They can add significant value to an advisor’s practice by streamlining processes and expanding the sophistication and number of options presented to clients. Ask about other TAMPs utilized by some of Triad’s advisors such as:
- Brinker
- Curian
- Fundquest
- Genworth
- SEI
If you would like to receive additional information on Triad’s fee-based accounts, please call 800-720-4003.