Products May 5, 2009

United Capital Offers New RIA Support Services through FundQuest

United Capital Financial Advisers, Inc. (UCFA), launched services for its national network of advisers and regional offices.
Reported by

FundQuest, a provider of managed account software, partnered with United Capital to build a customized suite of technology-based sales and productivity tools, back-office operations, portfolio accounting services, best-of-breed investments, and transition support teams, according to a news release.

UCFA said the services will integrate with its existing portfolio management capabilities. FundQuest will provide reporting aggregation, operational and workflow management technology, portfolio accounting integration, and sales and financial planning tools. Advisers will be able to work with multiple custodians and report on held-away assets, the company said.

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

FundQuest offers open-architecture solutions, including hybrid active and passive strategies, and income-oriented portfolios, according to the release.

“Our partnership with FundQuest enables us to provide RIAs and independent advisers with the best set of wealth management tools, technology, products, and support services available today,” said Joe Duran, CEO of United Capital, in the release. “These expanded services will help us continue to attract breakaway brokers from firms like Merrill Lynch as well as independent RIAs looking to materially improve their practices.”

United Capital, an independent national network of advisers, said it oversees more than $9 billion of client assets at 20 offices nationwide.

The Markets May 5, 2009

Charles Schwab Slashes Expense Ratios

Charles Schwab Investment Management today announced it has moved all equity and bond funds to a single share class priced at the lowest level.
Reported by

In addition to cutting its expense ratios, the firm has made the minimum investment for all of its funds $100. Regardless of investment size, all investors will have the same expense ratio. For instance, the Schwab S&P 500 Index Fund (SWPIX, SWPPX), will move from having the lowest expense ratio of 0.19% and the highest expense ratio of 0.36%, to expense ratios for every share class at 0.09%.

Schwab funds will continue to be distributed with no loads, the company said. For financial advisers, the lowered expense ratio will not make a difference in compensation structure, as advisers receive the same compensation regardless of the fund, said Peter Crawford, senior vice president of Investment Mangement Services at, speaking at a Schwab press event in New York City.

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

In fact, financial consultants/advisers were in mind with this change, noted Randy Merk, president and CEO of Investment Mangement Services. He said the initiative will give advisers something positive to help “mobilize clients.’

The firm’s motivation for the fee reductions is to stay competitive and keep clients invested for the long-term, Merk said. “If we make our clients happy, they’ll tell a friend,’ he said. He emphasized that the changes are permanent and not a promotion.

Last month, Charles Schwab announced changes to its target-date funds, including lower expense ratios and asset allocations that add more exposure to fixed-income beginning 10 years from the target date (see “Schwab Makes Target-Fund Enhancements’).

Looking Forward

At today’s event, Merk said Charles Schwab hopes to unveil a series of proprietary exchange-traded funds (ETFs) by the end of the year, pending approval by the Securities and Exchange Commission (SEC). “We’re a major player in ETFs, and we want to be a bigger player in ETFs,’ he said.

Charles Schwab has not yet joined the handful of recordkeepers offering guaranteed income products in the last couple years (see “The Inside Story’). Merk told PLANADVISER.com that Charles Schwab has considered offering a guaranteed income solution, but shelved it last year. He said they feel cautious because it is a product that might offer too much promise. With that said, they continue to be in the “laboratory,’ as plan sponsor clients are interested in access to a guaranteed product, he added.

Photographed: Randy Merk

«