In Practice August 7, 2012

Schwab RIA Practice Management Program Focuses on Change

Schwab Advisor Services scheduled ‘Insight to Action’ training classes that focus on strategic planning, client profitability, transitioning the team and technology.
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Schwab developed the curriculum from findings in its 2012 RIA Benchmarking Study, and will hold classes through the end of the year throughout the U.S., including Boston; Philadelphia; Tysons Corner, Virginia; Cincinnati; Cleveland; Pittsburgh; Fort Lauderdale, Florida; Denver; and Newport Beach, California.

“Rapid firm growth and increasing competition have made running an RIA [registered investment advisory] more complex,” said Nick Georgis, vice president with Schwab Advisor Services. “We recognize that advisers need in-depth help to address their critical business issues. Through the ‘Insight to Action’ program, Schwab business consultants and relationship managers work together with advisers to address business challenges and drive toward actionable solutions tailored to their unique needs.”

In fact, the Schwab survey found that the best-managed firms’ revenue growth rate is double their competitors—and that the best-managed firms’ revenue per professional is nearly 50% higher.

The three classes and one workshop are as follows:

Mastering Strategic Planning– Schwab’s RIA Benchmarking Study found that the best-managed firms place a high priority on strategic planning. This program empowers RIAs with a written strategic plan to help them expand their firm into the future.

Managing Client Profitability – This curriculum helps RIAs determine the cost of serving clients and create a dashboard that guides resource allocation, evaluates pricing models and helps RIAs efficiently and productively serve their clients while maintaining a “high-touch service model.”

Transitioning Teams – This class teaches advisers how to create and implement a succession plan. Advisers learn valuation measures, deal structure and the drivers of value for an RIA firm.

Technology Challenges – This interactive workshop, filled with exercises, is aimed at helping RIAs leverage technology and offers an overview of Schwab’s solutions offered through the Schwab Intelligent Technologies.

Schwab business consultants conduct the classes, which average three months in duration and which are held before working hours at convenient locations, including onsite RIA office visits. This is the second year that Schwab has offered the “Insight to Action” curriculum. To date, 600 advisers have participated in the program.

Advisers interested in the “Insight to Action” classes can contact their Schwab relationship manager or a Schwab business development officer. 

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Products August 7, 2012

Russell Rolls Out Series of Target Duration LDI Funds

Russell Investments unveiled a series of six target-duration liability-driven investing (LDI) commingled trust funds.
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Each LDI fund will be benchmarked to a comparable composite of the Barclays-Russell LDI Index Series.

The Russell Target Duration LDI Funds seek to provide high quality, mostly corporate bond-based exposure to fixed-income securities which closely match those found in discount curves used to value U.S. pension liabilities. The funds are designed to be used in combination as part of an overall LDI program, but also aim to achieve modest outperformance versus their respective Barclays-Russell LDI indices by combining diversified adviser styles and strategies over a full market cycle.

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“The new Russell Target Duration LDI Funds act as building blocks to create client-specific LDI strategies that provide a closer cash flow match of assets to liabilities than can be achieved through a single long credit strategy,” said Martin Jaugietis, CFA and director, head of LDI solutions. “They also contain less mark-to-market basis risk versus liabilities discounted using a corporate yield curve than comparable swaps-based target duration funds.”

The fund names will reflect target durations. The Russell LDI Fixed Income Fund will be available in 6-, 8-, 10-, 12-, 14- and 16-year options.

Calvin (Chenglong) Gong, CFA, FSA and CMT, serves as the portfolio manager for Russell’s overall LDI solution set, including the combined Target Duration LDI Fund series, while Gerard Fitzpatrick, CFA and FRM, serves as the portfolio manager for each individual LDI fund. As the portfolio manager responsible for the LDI hedging solution for U.S. institutional clients, Gong works closely with Jaugietis and reports to Jeff Hussey, Global Chief Investment Officer, Fixed Income.  

 

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