The Markets February 28, 2011

Strong 4Q for Money Management Firms

The fourth quarter of 2010 witnessed a healthy rebound in asset manager margins, according to kasina.
Reported by

The strong showing was supported by an 11% gain in The Dow Jones Total Stock Market Index, kasina found. Quarter over quarter, industry operating margins increased from 27.5% to 31.4%, and net margins increased from 21.2% to 23.4%. Firm-to-firm variations remain, but overall, margin compression pressures and worries that were prevalent in early 2010 have eased.

“Firms are above pre-crisis profit margin levels, supported by a combination of surging markets and some belt-tightening,” said Eric Daugherty, Director of Research and Principal. “From an operational perspective, many firms are actually in a better position than they were in 2007 and 2008. Margins are back to attractive levels, but the market is still substantially below its high.”

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Although firms tend to cluster in a pack, the results highlight the opportunities for both large scale players and small, niche asset management firms. Leading the large firms were Franklin Templeton and Blackrock, while Pzena and Calamos continue to lead the smaller firms in operating margins, kasina reported.

The company said asset managers continue balancing gains in short-term profits, with investing adequately in technology and innovation, to build industry leading organizations for the long term.

Products February 28, 2011

National Advisors Trust Expands Turnkey Program

The Trust Marketing Office (TMO) is aimed to help registered investment advisers (RIAs) attract and retain high net worth clients. 
Reported by

National Advisors Trust created the Trust Representative Office (TRO) in 2010, which has been providing RIAs with branded trust services and a turnkey marketing program to grow their trust business.The new TMO will place a dedicated Trust Officer in the RIA’s office to manage the TRO and market trust services to high net worth clients and local Centers of Influence (CoI).   

“RIAs realize that in order to grow a sustainable business, trusts need to be in their future,” said Ronald G. Ferguson, CEO of National Advisors Trust.  “Even with the recent tax law changes, over 70% of families with net worth exceeding $1 million use trusts in their estate plans. The TMO program puts the sponsoring RIA in the driver’s seat and helps the RIA build a stronger, more sustainable market position and business model for the future.”

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As part of its TMO launch, National Advisors hired Janet Bandera as Senior Vice President and Trust Officer for The Moneta Group, the first firm to adopt the TRO turnkey program (see “Moneta Group Joins National Advisors Trust Program”).Bandera, an estate planning attorney, will serve the role of Trust Officer for Moneta Trust. She will be responsible for implementing the TRO, working with Moneta’s investment advisers on trust and estate planning services with clients, and help in marketing and positioning trust services with local CoI.  Bandera has more than 15 years experience practicing law and providing consultation and advice regarding estate and trust matters.

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