June 20, 2012
--- The broker/dealer First Allied
Securities Inc. expanded its advisory platform, Guided Portfolio Solutions
(GPS) to give affiliated advisers a practical approach to conducting fee-based
The GPS platform allows advisers to
tailor client investment solutions based on individual risk tolerance and
objectives across all programs managed on the platform.
According to Adam Antoniades, First
Allied’s president and chief executive, the firm’s research revealed an industry
deficiency, a consequence of the fact that most advisory platforms have been
developed over time, making their offerings are fragmented, uncoordinated and
managed on legacy systems that are inflexible, expensive or both.
“We developed a platform that addresses
these issues and will increase our advisors’ profitability by helping them run
more efficient practices; help our advisers construct more effective investment
solutions for their clients; and be priced competitively,” Antoniades said.
Yanni V. Bousnakis, CFA, managing director
of investment management at First Allied, describes GPS as sophisticated and
simple. “The main problems with conducting advisory business are the numerous
moving pieces and unnecessary complexity,” he said. “Whether advisers manage clients’
assets on their own or delegate the responsibility to an investment strategist
or manager, they operate in the same environment and use a common set of tools
to run proposals, select products, manage accounts and receive performance
The level of efficiency within GPS
has also allowed First Allied to reduce ticket charges and address a main
barrier to advisers executing their own investment strategies, according to Bousnakis.
“Weighing the incremental benefit of trading versus the incurred cost becomes
less of a concern now. Our research indicated that a $9.95 ticket charge for equity,
mutual fund and exchange-traded funds, which comprise the vast majority of
adviser trading activity within adviser managed accounts, is the price point at
which impediments to trading are diminished,” Bousnakis said.
First Allied has also rolled out two
managed programs, Allocation Series and Manager Series. Allocation Series is a
centrally managed wrap program that gives advisers access to investment
strategists representing a wide range of disciplines, investment approaches and
styles. In addition to its own asset management team the unaffiliated
strategists Cougar Global Investments, New Frontier, Nuveen and PMC/Innealta
will participate in Allocation Series.
Allied’s Manager Series is a selection of several
hundred separately managed account strategies from the firm’s in-house asset-management
team, institutional investment managers and boutique asset-management firms.