BOSTON, Sept. 25, 2012 /PRNewswire/ -- LPL Financial LLC, the nation's largest independent broker-dealer* and a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA), today announced that it has expanded its Model Wealth Portfolios (MWP) platform through the addition of two new portfolios from LPL Financial Research as well as two managed alternative investment portfolios from Fortigent. These strategies further enable LPL Financial advisors to help meet their clients' needs in today's rapidly-evolving financial environment. This expansion provides access to the two new models designed by LPL Financial Research using their proprietary quad-core approach to create bond like exposure without holding bonds as well as Fortigent's alternative strategy models designed to capture performance with lower volatility in client portfolios.
MWP is a centrally managed, fee-based platform that enables LPL Financial advisors to provide client-centric, theme-based investment portfolios for a broad range of investors. Offering an array of mutual fund and exchange-traded fund strategies in an efficient, easy-to-manage format, MWP was named the Advisory Product Solution of the Year in 2010 by the Money Management Institute (MMI), the leading national organization for the advisory solutions industry. As of June 30, 2012, MWP assets under management totaled $9.3 billion, an increase of 52% over the prior year. The platform was first launched as of March 31, 2008.
The two new offerings from LPL Financial Research – the Quad-Core Balanced and Quad-Core Income Portfolios – extend the proprietary "Quad-Core" strategy that is currently offered on the MWP platform through the Absolute Return Portfolio. The Quad Core is a four-pronged methodology intended to provide a more diversified approach to portfolio management. This approach includes allocations to the opportunistic ideas of LPL Financial Research and the diversifying ideas from other managers to drive alpha and income and then leverages non-correlated alternative strategies and hedging strategies to control the beta, or market sensitivity, of the portfolios.
The new Quad-Core Income Portfolio seeks to replicate or beat the performance of core bonds while generating more income and the Quad-Core Balanced Portfolio seeks the return of a traditional 60/40 stock-bond portfolio with little or no sensitivity to rising interest rates.
Fortigent, a premier provider of wealth management solutions to advisors serving the high net-worth market, is a wholly owned subsidiary of LPL Financial. The new strategies added to the MWP platform enable LPL Financial-affiliated advisors to benefit from Fortigent's deep background and expertise in alternative investments. Advisors can offer their clients the diversification and risk-management benefits of alternative investments strategies with the liquidity and transparency benefits of mutual funds. The two portfolios – the Alternative Strategies and Alternative Strategies – Enhanced portfolios – are geared to capture the performance of traditional equity / fixed income portfolios, but with lower volatility, reduced potential for loss of capital and lower correlation with other asset classes.
John Moninger, LPL Financial Executive Vice President of Advisory and Brokerage Consulting Services, said, "As financial markets continue to evolve, LPL Financial is committed to providing our advisors with the strategies they need to help their clients progress toward their long-term goals. The expansion of the MWP platform to include two new portfolios from LPL Financial Research, along with two alternative investment strategies from Fortigent, gives our advisors the tools to address an even wider range of client needs, while accessing the diversification and risk-management benefits that come from non-correlated alternative strategies."
Burt White, Managing Director of LPL Financial Research and Chief Investment Officer of LPL Financial, said, "Our team seeks to provide portfolio management advice that attempts to stay ahead of what seem to be challenges presented by markets. The looming era of rising interest rates can appear to be a challenge, but we are very pleased to take advantage of this opportunity through our proprietary investment approach available in our Quad Core portfolios. By bringing these portfolios to the MWP platform, we are providing LPL Financial advisors even more tools to help meet crucial client needs and goals."
Scott Welch, Senior Managing Director, Investment Research and Strategy for Fortigent, said, "We are excited to be working with LPL Financial to put our experience in the alternative investment markets to work for their affiliated advisors through the MWP platform. In this volatile environment, advisors and their clients are looking for strategies that offer the potential for consistent returns along with attractive risk characteristics and diversification benefits. We are glad that we can help LPL Financial advisors respond to this demand for leading-edge alternative strategies through our participation in the MWP platform."
Mr. Moninger concluded, "These new additions to the MWP platform further strengthen our advisors' ability to help their clients move forward in today's complex financial environment, regardless of near-term market cycles. We are pleased to work with LPL Financial Research, Fortigent, and all of our investment manager partners to enhance the MWP platform, and to help our advisors grow and strengthen their practices."
About LPL Financial
LPL Financial, a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA), is the nation's largest independent broker-dealer (based on total revenues, Financial Planning magazine, June 1996-2012), a top RIA custodian, and a leading independent consultant to retirement plans. LPL Financial offers integrated technology, comprehensive clearing and compliance services, practice management programs and training, and independent research to over 13,100 financial advisors and approximately 685 financial institutions. In addition, LPL Financial supports over 4,500 financial advisors licensed with insurance companies by providing customized clearing, advisory platforms and technology solutions. LPL Financial and its affiliates have approximately 2,900 employees with headquarters in Boston, Charlotte, and San Diego. For more information, please visit www.lpl.com.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC
*Based on total revenues, Financial Planning magazine, June 1996-2012
Fortigent delivers a fully integrated and customizable business-to-business outsourced wealth management solution to banks, trust companies, and independent advisory firms. Services include an "open architecture" investment platform with particular experience in alternative investments, a flexible unified managed account program, and consolidated wealth reporting. Fortigent's web-based portal interface allows access to proposal and rebalancing tools, client portfolio reporting and accounting, as well as industry articles, research papers, and other practice management and business development resources. For more information, visit www.fortigent.com. Fortigent is an independent subsidiary of LPL Financial Holdings Inc. and sister company of LPL Financial, LLC.
Investing in mutual funds involves risk, including possible loss of principal. Investments in specialized industry sectors have additional risks, which are outlined in the prospectus.
Principal risk: An investment in Exchange Traded Funds (ETFs), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks: not diversified, the risks of price volatility, competitive industry pressure, international political and economic developments, possible trading halts, Index tracking error.
Rebalancing may incur a taxable event.
Alternative strategies may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor's portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk.
Low correlation means that different asset types have not performed in the same way: When returns on some asset types were declining, returns on others were gaining.
Alpha: Measures the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by Beta. A positive (negative) Alpha indicates the portfolio has performed better (worse) than its Beta would predict.
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SOURCE LPL Financial LLC