Cetera teams up with three marquee money managers

Cetera Financial Group Inc. is launching a mutual fund/ETF advisory program that will give advisers in the firm’s three brokerages access to institutional services and advice from three major money managers.

Wilshire Associates Inc., Sage Advisory Services Ltd. Co. and UBS Global Asset Management (Americas) Inc. have agreed to manage money from Cetera clients starting at minimums of as little as $25,000.

“The program will allow advisers and their clients to mix and hold several different investing models in one custodial account,” said Barnaby Grist, executive vice president of wealth management at Cetera.

The beauty of the program, Mr. Grist said, is that coupled with Cetera’s Folio Dynamics technology platform, advisers and their clients can place funds with one or more of the three distinctly different money managers and quickly dial up or down allocations. “The underlying technology platform is integrated to the advisers’ desktops, giving them the flexibility to rapidly respond to client needs,” he said.

The platform also enables automatic re-balancing in response to movements in the market, freeing advisers from having to toggle back and forth between websites and enter passwords to make changes in accounts. “It maintains balance automatically and allows the adviser to be the financial quarterback,” Mr. Grist said. “It enables them to focus on their clients’ needs, and not spend time on mundane tasks.”

According to Mr. Grist, Cetera looked at about 30 different money managers and a dozen technology platforms before deciding on the mix. Wilshire Associates, known for its skills in investment manager selection, provides the strategic option for long-term mutual fund investments. Sage Advisory provides a more tactical alternative, specializing in fixed-income investing through ETFs. UBS Global Asset Management provides another tactical alternative focused on global equity allocation.

Mr. Grist said Cetera’s scale — roughly 4,800 brokers — enabled him to negotiate good pricing on the products. Based on the level of investment, the strategic option can start at 45 basis points and the tactical products at 65 basis points.

“Obviously, it’s nice to bring institutional expertise to the table, but we needed to package and deliver it in a way that resonates with investors and their advisers,” he said. “I think we’ve done that.”