ATLANTA, Oct. 15, 2014 /PRNewswire/ -- More than half of advisors who invest in actively managed funds do so through boutique investment managers, according to a recent survey by RidgeWorth Investments and WealthManagement.com. The appeal of these boutique firms is clear to these advisors: Such firms, they said, offer targeted and unique investment strategies, and the flexibility to execute those strategies in all market conditions. "Pursuing a specific strategy requires deep expertise and focus," says Ashi Parikh, Chief Executive Officer and Chief Investment Officer of RidgeWorth Investments. "And those are qualities investors should look for in a boutique firm."
RidgeWorth's publication, "The Boutique Advantage," offers commentary on many of the survey's findings—including the qualities advisors find appealing among boutique firms, as well as how advisors compare boutiques to large asset management firms. (Hint: Most advisors don't characterize large firms as "agile.")
The white paper also makes clear that not all boutique firms are alike. Within the boutique investment management industry, firms employ several models, from small, independent firms to subsidiaries of larger investment or financial services firms. A boutique may also be part of what's known as a "multi-boutique" model, in which a network of several boutiques is under the umbrella of a parent company. This model offers a unique blend of independence and institutional support. They receive resources from the parent company, but remain independent in their investment and portfolio management decisions.
RidgeWorth Investments provides one example of a multi-boutique model. RidgeWorth, which has approximately $45.3 billion in total assets under management as of September 30, 2014, is a holding company with a network of five specialized investment management firms under its umbrella. These boutiques offer access to 17 primary equity and fixed-income investment styles. RidgeWorth handles a range of business aspects such as information technology, trading, operations, mutual fund distribution and marketing, so its boutique managers can devote their time and resources to managing investments. "The holding company manages the business. This allows the portfolio managers to focus on managing money," says Parikh. "Investors can benefit from the managers' individual insights, the collective strength of the network and its robust infrastructure support."
RidgeWorth suggests advisors and investors consider the potential advantages of the boutique model, and investigate the variations among firms in the boutique industry. From targeted investment strategies to flexible operations, boutiques may be well positioned to quickly seize on opportunities in the market. For many advisors, the multi-boutique model may present the most appealing blend of independence, flexibility and institutional support in the wider boutique market.
To access this white paper, visit www.ridgeworth.com/boutique-advantage.
About RidgeWorth Investments
RidgeWorth Investments serves as a holding company that owns interests in five investment boutiques with $45.3 billion in assets under management as of September 30, 2014. RidgeWorth's wholly owned boutiques are Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, and Silvant Capital Management. RidgeWorth also holds a minority ownership in Zevenbergen Capital Investments. These investment boutiques manage a wide variety of investment disciplines across the fixed income and equity asset classes, and provide investment management services to a growing client base that includes endowments, foundations, corporations, healthcare organizations, municipalities, public funds, associations, insurance companies, labor unions and high net worth individuals. In addition, RidgeWorth serves as the investment adviser to the RidgeWorth Funds mutual fund family. RidgeWorth Investments is a trade name for RidgeWorth Capital Management LLC, an investment adviser registered with the SEC headquartered in Atlanta. For more information about RidgeWorth, please visit www.ridgeworth.com.
©2014 RidgeWorth Investments. RidgeWorth Investments is the trade name for RidgeWorth Capital Management LLC, an investment adviser registered with the SEC and the adviser to the RidgeWorth Funds. RidgeWorth Funds are distributed by RidgeWorth Distributors LLC, which is not affiliated with the adviser. Collective Strength. Individual Insight. is a federally registered service mark of RidgeWorth Investments.
SOURCE RidgeWorth Investments