Icon moves into retail SMAs
The firm plans to make two of its mutual fund strategies available on separate account platforms starting next month.
Icon Advisers Inc. is expanding into the retail separately managed accounts market with plans to make two of its mutual fund strategies available on separate account platforms starting next month, according to a company executive.
Based in Greenwood Village, Colo., Icon has been working with JPMorgan Chase & Co. in New York, to develop model portfolios for the Icon Core Equity Fund (ICNIX) and the Icon International Equity Fund (ICNEX).
The strategies will eventually be offered through a variety of separate account platforms, according to Steve Holmes, Icon’s chief sales and marketing officer.
Icon, which has $5.4 billion under management, already manages $300 million worth of separate account assets for institutions and wealthy individuals who can meet investment minimums of between $1 million and $3 million.
The model portfolio structure, which transfers most of the account management and trading responsibilities to the SMA sponsor firm, create the economies of scale that help drive investment minimums down to retail levels, said Mr. Holmes.
The separate account portfolios will be managed under the same quantitative style as the corresponding mutual funds, but will be more concentrated.
Also, the international separate account portfolio will be made up entirely of American depository receipts.
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