Products May 29, 2012

TD Ameritrade Launches Toolkit for RIAs

TD Ameritrade Institutional created a marketing toolkit for independent registered investment advisers (RIAs) to outline the benefits of working with a fiduciary adviser.
Reported by

According to TD Ameritrade Institutional’s Advisor Sentiment Survey, the top reason investors work with RIAs is that they are required as fiduciaries to offer advice that is in the best interest of clients, 29% of respondents said. Other responses were more personalized service and competitive fee structure offered at an RIA firm (22%) and dissatisfaction with full-commission brokerages (18%).

RIAs can use the toolkit to personalize a presentation and a series of advertisements designed to educate investors on the differences between brokers and RIAs. Guidebooks, white papers and online third-party resources are also available to assist advisers in their efforts to differentiate and market their businesses. RIAs have access to end-client communications to help provide clarity on the account protections of assets held with TD Ameritrade.

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

“RIAs need to market their fiduciary standard of care every chance they can. Investors increasingly seek objective advice from an adviser who sits on the same side of the table and is required by law to put the clients’ interests first,” said Tom Nally, president of TD Ameritrade Institutional.

TD Ameritrade Institutional’s Adviser Sentiment Survey was conducted by Maritz Inc. by telephone from March 29 to April 9, with 502 RIAs participating. RIAs who custody with TD Ameritrade, as well as other independent RIAs across the country, were asked, “What is the main reason your new clients chose the RIA model?”

More information on the toolkit is available here.

Products May 29, 2012

American Beacon Debuts Income Equity Fund

American Beacon Advisors launched American Beacon The London Company Income Equity Fund to focus on dividend income and capital appreciation.
Reported by

The fund has five institutional and investor share classes. The Fund’s sub-adviser is The London Company, a registered investment adviser with $3.2 billion in assets under management and $6.3 billion in total entity assets as of March 31. The London Company, of Richmond, Virginia, has more than 12 years of experience in managing an income equity strategy.

The Fund seeks to generate a highly competitive dividend income stream. A second objective is investing in stocks to deliver capital appreciation. The London Company will select the Fund’s holdings using a proprietary approach to portfolio construction, typically investing in 30 to 40 stocks, primarily of companies with an average market capitalization of $70 billion or more, along with smaller market capitalization companies and an allocation to preferred shares.

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

The London Company will use its balance-sheet optimization model, designed to identify high-return-on-capital companies, to choose securities. These companies typically are over-capitalized and have excess amounts of cash on their balance sheets that may be used to fund organic growth or create value for shareholders in the form of higher dividends or share buy-back programs.

«