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June 12, 2012 at 09:08 AM
S&P Capital IQ is getting into the subadvisory business in a big way, targeting independent advisors who seek help in building model portfolios.
The McGraw-Hill Cos. business line, which provides research and analytics to investment advisors, wealth managers and institutional investors, announced Monday that it has launched a new group, Global Markets Intelligence. GMI combines three of S&P Capital IQ’s businesses—U.S. investment advisory, U.S. risk strategies research and U.K. fund review—into a single entity that can act as a sub-advisor in providing model portfolios to advisors.
This little-known business has quietly amassed over $18 billion under advisement for institutional investors.
Michael Thompson, GMI’s managing director and head, told AdvisorOne in an interview on Monday that the three smaller businesses were profitable but somewhat overlooked because they were operating separately. However, the dramatic growth of independent advisors in recent years has resulted in increased demand for S&P Capital IQ to provide its services as a subadvisor, Thompson said.
“People knew those businesses were there, but they never got any institutional sponsorship,” Thompson said. “We see a tremendous opportunity in the financial services industry with the maturation of the independent provider.”
GMI develops model portfolios in equity and fixed income using proprietary Standard & Poor’s data and analytics such as S&P Ratings, S&P Indices and CompuStat. It operates through S&P Investment Advisory Services in the United States, and McGraw Hill Research Europe Limited in the United Kingdom and Europe.
“The Global Markets Intelligence business is a great example of how S&P Capital IQ continues to leverage proprietary content, analytics and intellectual property to help our customers drive growth,” said Lou Eccleston, president of S&P Capital IQ and S&P Indices, in a statement.
