Financial advisors’ ongoing desire to grow their business through lower fees and the outsourcing of time-consuming tasks has been acknowledged with a giant independent wealth management firm’s decision to adopt a no-transaction-fee structure.
Private Advisor Group’s shift this spring to a no-transaction-fee structure for its investment management platform — WealthSuite — aims to build on industry trends for lower costs and zero ticket charges as advisors manage the portfolios of demanding clients.
“We aim to help advisors deliver more affordable and efficient services to their clients,” says James Sullivan, the company’s head of advisor advocacy and technology.
In addition, the financial services firm has added two financial services firms — State Street Global Advisors and LoCorr Funds ‑— to its stable of investment strategists. The expanded line up will give Private Advisor Group’s 800 advisors an opportunity to use a wider range of investment models and expanded portfolio options.
Based in Morristown, N.J., Private Advisor Group is a registered investment advisor that had more than $35.2 billion in assets under management as of June 30, 2024. Sullivan estimated that about 50% to 60% of the firm’s clients are more than 50 years old.
Launched in October 2022, WealthSuite is an investment management platform that streamlines portfolio management for the company’s financial advisors while improving the investment experience of their clients. It offers various features including model portfolios, custom indexing and tax-optimized solutions. It also gives advisors the flexibility to choose investment products that best suit their clients’ needs, such as bespoke mutual funds, exchange-traded funds (ETF) and blended mutual fund/ETF model portfolios.
“Where we most often hear from our advisors is around their ability to be able to spend more time focused on clients,” says Sullivan. For the third consecutive year, Private Advisor Group’s affiliated advisors indicated, in its Advisor Insights Survey, that time is their top challenge as they serve clients. More than one third (36%) identified time as the top challenge, more than double the next highest challenge: attracting clients. Advisors can use the time gained by using an investment management platform, such as WealthSuite, to deepen relationships with clients; their clients’ children and expand their client base.
According to a 2024 Natixis survey of financial professionals, the average advisor spends 16% of their time managing client investments.
State Street Global Advisors will offer bespoke ETF model portfolios aligned to five investment objectives: aggressive growth, growth, growth with income, income with moderate growth, and income with capital preservation. It will be managed by the same team that manages money for central banks, pensions, endowments and other large institutions.
The LoCorr Funds models blend active and passive mutual funds and ETFs to create alternative investment portfolios tailored to three investment objectives: growth, income and preservation. They will complement existing equity and fixed income allocations.
