What you missed in wealth management: May 24-28

May 28, 2021 2:01 PM

Raymond James launched new software to generate client proposals; the week in career moves and M&A at LPL, Kestra, Dynasty, BNY Mellon Wealth Management, Baird and Janney Montgomery Scott; and Adasina Social Capital's social justice ETF hits $50 million in its first six months. Here's what happened in wealth management this week.

Raymond James camps at dusk provided by firm cropped

Raymond James launched a new proposal generation tool enabling advisors to create customized reports and recommendations for clients and prospects. Pilot participant Michelle Marquez of Pasadena, California-based Marquez Private Wealth Management of Raymond James, explained how the advisor desktop application works in practice. "I used the new tool to package and share our story, investment process and customized models to a prospective client, who was so impressed by our proposal that it helped us ultimately win the client’s business of over $15 million in assets," Marquez said in a statement.

Bloomberg News

Financial advisors Craig Zaleck and Mark Hogan of Bergen Point Wealth Management left Cetera Financial Group’s First Allied Securities for LPL and its corporate RIA, choosing Independent Network of Consultants & Advisors as their office of supervisory jurisdiction. The Bayonne, New Jersey-based duo managed $275 million in client assets with their prior firm. As part of the move, the friends of 30 years merged their practices together.

Former WisdomTree Asset Management executive Alisa Maute joined LPL as the firm’s executive vice president of advisor growth solutions, reporting to Ed Fandrey, divisional president of the advisor solutions team. Maute had earlier tenures with Morgan Stanley and Van Kampen Investments. In her new role with the nation’s largest independent broker-dealer, Maute will focus on practice management services and strategy for the firm’s more than 17,000 advisors. “There is tremendous opportunity in our industry, with increasing demand for advice and a growing desire by advisors to run a practice of their own design,” Maute said in a statement. “I’m excited for the opportunity to join this team to help increase access to the capabilities, resources and solutions that can bring the most value to advisors’ practices.”

Peoria, Arizona-based Bull and Bear Wealth Management dropped Ameriprise to join Kestra Private Wealth Services, the independent broker-dealer’s hybrid RIA for breakaway teams. Advisors Ted Horowitz and Ben Belanger managed $112 million in client assets with their former firm.

Bloomberg News

The week in court cases: Former financial advisor Emil Botvinnik settled an SEC case alleging he defrauded five retail clients “by recommending frequent, short-term trades which generated large commissions for Botvinnik but were almost guaranteed to lose money for his customers,” according to the regulator. As part of the settlement, Botvinnik agreed to a bar from the industry, along with paying disgorgement of $1.1 million, prejudgment interest of $208,000 and a civil penalty of $160,000. The SEC filed the charges against Botvinnik in 2018, and a judge in the U.S. District Court for the Southern District of New York approved the settlement on May 20.

Procyon Partners and Pivotal Planning Group, two RIAs using the Dynasty Financial Partners platform, are merging their practices under the Procyon brand. The deal will create a firm with $4.5 billion in client assets managed by 24 employees in four offices in Shelton, Connecticut; Melville, New York; New York City; and Virginia Beach, Virginia. Melville-based Pivotal managed $400 million as a standalone firm prior to the deal.

On May 25, Raymond James agreed to acquire Cebile Capital, a private fund placement agent and secondary market advisor to private equity firms. Upon the close, the London and New York-based firm will fold into Raymond James’ 450-employee investment bank under its founder Sunaina Sinha Haldea. “Together our strengthened and expanded offerings will deliver the sophisticated solutions for which our clients are accustomed, while continuing to be an industry leader in GP-led secondary advisory and fund placement services,” Sinha Haldea said in a statement.

Daniel Tepper/Bloomberg News

BNY Mellon Wealth Management hired three executives for its Denver office: Marie Dawson as senior fiduciary specialist, Steve Starzec as client strategist and Matt McConaty as associate client strategist. Dawson comes from the firm’s Las Vegas office and had prior roles with Whittier Trust and BMO Harris Bank. Starzec had earlier tenures with MidFirst Private Wealth Management and Bank of the West Wealth Management. McConaty joins the firm with previous experience at Heartland Financial USA, W.G. Nielsen and UBS Wealth Management. BNY Mellon’s wealth division manages $292 billion in client assets on behalf of individuals and families, their family offices and business enterprises, planned giving programs and endowments and foundations.

Mercer Global Advisors has acquired Starkville, Mississippi-based ET George Investment Management. Founder Ernie George’s firm manages about $170 million in AUM on behalf of about 155 clients. “It was time for our firm to implement our business succession strategy,” George said in a statement. Oak Hill Capital and Genstar Capital-backed Mercer has 559 employees and more than $30 billion in client assets.

Baird tapped ex-Abbot Downing executive Melanie Schmieding to be director of Baird Family Wealth in its private wealth management group. Schmieding and fellow director Jaleigh White oversee a new team for complex clients such as business owners and families with legacy wealth. Schmieding operates from Baird’s Denver office.

Ian Tuttle

Only six months after its launch, the first fund offered by impact investing manager Adasina Social Capital has topped $50 million in assets. Clients have invested $52 million in the Adasina Social Justice All Cap Global ETF. “We’re extremely humbled and encouraged by the response we have received so far from the investment and social justice communities,” Adasina CEO Rachel Robasciotti said in a statement. “We launched this ETF to give everyone the opportunity to invest in line with their social justice values and direct their assets toward the issues most critical to long-term, systemic change.”

ABLEnow, part of the Virginia College Savings Plan, has reached $100 million in tax-advantaged ABLE accounts for clients with disabilities, the plan announced. “For many, this is the first time they’ve been able to save money without impacting their eligibility for certain disability benefits that provide income, health care, food and housing assistance,” the plan said in a statement. ABLEnow has clients across the country and is the largest independent ABLE provider.

Philadelphia-based broker-dealer Janney Montgomery Scott LLC has been acquired by private equity firm KKR.

Janney Montgomery Scott recruited five advisors with a combined $550 million in client assets as part of its incoming crop of 19 brokers with $3.9 billion in the year so far. Advisors Richard Morrow and Tommy Hicks, as well as Private Client Associate Sara Price, left Wells Fargo Advisors to join Janney in Charlotte, North Carolina. The team, Morrow Hicks Wealth Advisory Group, managed $250 million with their prior firm. In New Hope, Pennsylvania, advisor Gregory Kuhn and Private Client Associate Dawn Calvarese dropped Merrill Lynch to go to Janney. The team managed $97 million with the wirehouse. Janney also added two more advisors to its branch in Westbrook, Connecticut: Ex-Wells Fargo broker Patrick Witheril ($88 million) and former RBC rep Vincent Crudo ($112 million). In addition, the firm tapped Norma Duckett as its complex manager in Columbus, Ohio, where she’ll oversee its offices in Cincinnati, Grandview, and Mansfield.

Carson Wealth Management Group building, CWM, provided by Carson Group.

Tom Chaney left LPL Financial to affiliate with Carson Wealth in Las Cruces, New Mexico and El Paso, Texas. Chaney manages some $50 million and has been in practice for three decades, with several years in the Carson Coaching program, the firm said in a statement.

The pandemic has spurred most Americans to make or reconsider financial plans, Northwestern Mutual found. The insurer’s 2021 Planning & Progress Study found that 83% of Americans started or revised their financial plan because of COVID, including 17% who instituted a plan for the first time. A third (32%) said they’ve gotten better about financial discipline this year, and 95% expect to stick with it. But 45% say they won’t achieve financial security on schedule because of pandemic-related setbacks, with most saying they’re behind by one to two years.

Victor J. Blue/Bloomberg

Fidelity Institutional is launching a Wealth Advisory Institute to train advisors how to manage clients’ money holistically. The giant asset manager will offer live and on-demand sessions such as Move to a Fee-Based Model, Integrated Financial Planning, Develop Your Investment Footprint, Optimize Your Business and Become a Holistic Wealth Manager. Each module will have research and multimedia content from Fidelity and other asset managers offering funds on its platform, including American Century Investments, BlackRock, Capital Group, Goldman Sachs Asset Management, Invesco, Janus Henderson, MFS, PIMCO and T. Rowe Price. The educational program is available to Fidelity Institutional clients who are signed up for Fidelity Managed Account Xchange (FMAX) or Managed Account Solutions (MAS).