Products October 1, 2008

International Value Advisers Launches Mutual Funds

International Value Advisers, LLC (IVA) announced the launch of its inaugural mutual funds, IVA Worldwide Fund and IVA International Fund.
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The funds are managed jointly by Charles de Vaulx and Charles (“Chuck”) de Lardemelle. IVA, which launched in October 2007, began investment operations in January and manages $555 million in global assets for public and private institutions and high-net-worth individuals, according to a press release.

According to the firm, IVA International Fund will generally invest in markets outside the United States, and IVA Worldwide Fund will invest globally, including the U.S. Both funds will primarily seek long-term growth of capital while attempting to moderate risk by investing in a diversified range of securities and asset classes. The funds will invest in companies of any capitalization that have fundamental value, financial strength and stability. In order to try to mitigate risk, both funds may hold substantial amounts of cash, as well as high yield bonds, precious metals and real estate related securities. The launch announcement also says that the funds “pursue a strict value investing philosophy that the investment team has practiced together for many years.”

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Class Runes

The funds will be available in class A shares, with a maximum front-end sales charge of 5.00%; class C shares, which have no initial sales charge but a higher 12b-1 sales charge than class A shares; and class I shares, which have no initial sales charge and no 12b-1 sales charge. Class A shares’ initial sales charge may be waived for investors who purchase in connection with non-transaction fee fund programs and programs offered by fee-based financial planners and other types of financial institutions. The minimum initial investment for class A and class C shares is $5,000; for class I shares it is $1 million.

De Vaulx is a Partner and Portfolio Manager of IVA. Prior to his joining the firm in March, he was CIO of the Global Value Group at Arnhold S. Bleichroeder Advisers, LLC. He also served as portfolio manager of the First Eagle Global, Overseas, Gold, U.S. Value and Overseas Variable Funds.

De Lardemelle is a founding partner and portfolio manager at IVA. Until September 2007, he was a senior vice president of ASB and the associate portfolio manager of the First Eagle Global, Overseas, and US. Value Funds.

More information is available at www.ivafunds.com

Data & Research October 1, 2008

Edward Jones, Raymond James Can Boast Most Satisfied Advisers

The J.D. Power and Associates 2008 Financial Advisor Satisfaction Survey found that a firm’s performance was the key driver of satisfaction among employee advisers.
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Edward Jones and Raymond James and Associates tie to rank highest in the study, with each receiving an index score of 879 on a 1,000-point scale. Edward Jones performs particularly well in providing a satisfying work environment and supporting its advisers, according to a J.D. Power and Associates press release. The firm takes the gold for the second year in a row (“Happiest Advisers Found at Edward Jones“). Raymond James and Associates performs particularly well in the job duties, products and offerings, compensation, and firm performance factors, the release said.

The study measures the satisfaction of both employee advisers and independent advisers affiliated with a broker/dealer. The average score was 655 among the six firms that had a large enough sample to be ranked. Merrill Lynch received a score of 697; Wachovia Securities, 627; Citigroup Global Markets, 624; and UBS Financial Services, 598.

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The study found that among employee advisers, the most important driver of satisfaction is firm performance, which affects adviser compensation. Both Raymond James and Edward Jones scored at the top of a J.D. Power and Associates survey released earlier this year measuring investor satisfaction (see “Good Investment Performances Equals Investor Satisfaction“), in which performance proved to be a large factor in investor satisfaction.

Among independent advisers, support is of primary importance. Among independent advisers, J.D. Power Associates said that Ameriprise Financial Services, LPL Financial Services, and Raymond James Financial Services all performed particularly well.

The study examined eight key drivers of employee adviser satisfaction: internal operational support/people; administrative and compliance support; work environment; firm performance; compensation; products and offerings; problem resolution; and job duties. J.D. Power and Associates said attracting new clients and accumulating assets continue to be key concerns for advisers. Also critical are coping with market volatility and receiving adequate compliance, technology, and product support from firms.

“In this situation, it’s tempting to cut spending—particularly with regard to support functions and customer service—to combat financial challenges,’ said David Lo, director of investment services at J.D. Power and Associates, in the release. “However, one of the most important actions is to renew focus on the adviser experience. Providing premium operational and administrative support will help ease concerns and allow advisers to grow their business and offer top-notch service to their clients.’

The study is based on responses from 3,124 financial advisers who are registered with the Financial Industry Regulatory Authority (FINRA). The survey was conducted online between May and June 2008.

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