The new offering allows plan participants to invest some or all of their retirement assets into an individually managed account (IMA) so participants get professional asset management for a minimal cost and with no minimum account balance, according to a press release. It will bring together MG Advisory’s Internet-ready Asset Management Services with CLS’s portfolio strategy for retirement accounts called Customized Portfolio Management, in which participants’ assets are invested in a customized portfolio according to their individual investment objectives and financial goals.
This product has multiple adviser options, according to the press release. It can be a tool to generate additional leads and clients, and can also increase revenue for third party administrators and financial advisers.Further, the announcement said that because the funds are professionally selected and the managed account product will offer mutual fund analysis and ongoing monitoring and reporting, it can be used to help advisers reduce their fiduciary responsibility.
MG Advisory is a subsidiary of Matrix Settlement & Clearance Services, which itself is a subsidiary of MG Colorado Holdings, Inc., which is a provider of back-office trust, custody, trading, and mutual fund settlement and clearance services for financial institutions including banks, broker-dealers, trust companies, investment advisers, and record-keepers/third-party administrators (TPAs).