Products May 4, 2010

Benefits Firm Unveils Open Architecture ETF Platform

An employee benefits consulting firm announced it is offering an open-architecture arrangement to allow plans to select from more than 800 exchange-traded funds (ETFs) when developing an investment menu.
Reported by

A news release from McCready and Keene (MCAK), which has offices in Chesterfield, Virginia, and Indianapolis, Indiana, said the firm can support plans using investments in both ETFs and mutual funds (over 23,000), permitting plan participants to exchange one for the other at the same day’s price at market close. 

The list will be updated from time to time as custodial partners provide new information on additional ETFs. 

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The fees for trading ETFs are determined by the number of shares bought or sold, similar to traditional stock trading fees.

More information is at www.mcak.net.

Products May 4, 2010

TD AMERITRADE Institutional Launches Advisory Firm Valuation Tool

Independent registered investment advisers (RIAs) who custody assets with TD AMERITRADE Institutional now have access to the Valuation Analyzer, an online tool to help advisers estimate their firm’s value.
Reported by

According to ECHELON Partners, which developed the tool, the offering can help advisers prepare for a variety of potential business transitions such as merging with a partner; buying or selling a business; configuring buy/sell equity incentives; or reorganizing a family-owned business.

“Historically, many advisers have relied on ‘rule of thumb’ methodologies to value their businesses. But each adviser’s practice is different and the typical two-to-three times revenue multiple may not be reliable,” said Michael Watson, director of Practice Management, TD AMERITRADE Institutional, in a news release. He noted that, in addition to giving advisers the current value of their firms, the tool aims to help advisers increase business value over the long-term.

How it works is that advisers input qualitative and quantitative variable about their businesses across 10 categories, such as financial performance and business model. They then receive three customized reports: a high-level overview, a valuation summary, and a scorecard of valuation drivers (scoring performance from excellent to weak).

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The tool is available at no charge to RIAs who custody assets with TD AMERITRADE Institutional and is accessible on the Veo advisor Web site. For more information, call 1.800.934.6124.

«