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Rating:Separate Accounts Now Home for ETFs Not Rated 3.0 Email Routing List Email & Route  Print Print
Wednesday, December 05, 2001

Separate Accounts Now Home for ETFs

Reported by Tony Pennino

London Pacific Group (LPA) has added Exchange Traded Funds (ETFs) to its wrap-fee services, which also include mutual funds and managed accounts, Dianna Zentner, CIMA and director of the firm's asset consulting group, told the MutualFundWire.com. Executives at the first believe that LPA is the first firm to offer a wrap-fee ETF platform that includes ETFs with separate accounts, though they have heard that other firms are developing similar programs.

The system is designed so that institutions and RIAs can deploy ETFs as part of passively managed portfolios or in conjunction with actively managed mutual fund and separate account manager strategies. They will be available on a wrap-fee basis, and the firm contends that the fee for this service is lower than wrap-fee mutual funds.

LPA is making the platform available to those investors with a minimum of $25,000 to invest. Executives at the firm feel that the investor will be able to achieve greater asset diversification at a lower cost.

"We pride ourselves on providing financial advisors with access to the latest investment products available. Our wrap-fee program is significantly enhanced by the addition of ETFs, raising the standard in the industry," commented Zentner.

"Adding ETFs to a separate account program will mean a great deal to both advisors and investors," Zentner continued. "With ETFs in the program, we have the ability to offer a separate account program at a lower minimum; advisors will be able to attract more clients at an earlier stage in their investing life. And as the portfolios grow, the client will be able to invest in different kinds of products. And ETFs can be used to fill asset classes for investors with larger portfolios."

"And by placing ETFs in a wrap program, we make them more accessible to the investor. The transaction costs have been eliminated. ETFs are traded like equity securities. There are a number of expenses to purchase and sell them. Through our offering, those fees are eliminated," she concluded.

LPA is actively marketing the new vehicle to its advisors. There is a new brochure that is being distributed, and it will be a point of discussion during a weekly meeting with advisors. There is also information on the service on the firm's website. 

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