Pershing is joining other broker-dealers in launching mutual fund and exchange-traded fund solutions that not only offer a lower minimum balance, but allow registered reps looking to transition to a fee-based advisory model to meet requirements under the Department of Labor’s fiduciary rule.
Pershing LLC, a BNY Mellon company, said Monday that it has begun offering through its affiliate Lockwood Advisors Inc. the Lockwood WealthStart Portfolios, solutions for emerging and mass affluent investors, along with new solutions provided by third-party providers. Both feature a diverse range of asset allocation strategies and a minimum balance of $10,000.
The portfolios include asset allocation strategies targeted at investors with varying risk profiles, and can be accessed through diversified risk-based model portfolios from some of the industry’s leading firms, including Lockwood.
“These flexible mutual fund and ETF solutions demonstrate our ongoing commitment to providing financial professionals with the tools they need to navigate the evolving regulatory landscape and grow their business,” said Joel Hempel, Lockwood’s chief operating officer, in a statement. “They may also assist registered reps who are considering a transition from a commission-based brokerage model to fee-based advisory relationships.”
Pershing says the new offering is fully integrated into Pershing’s flagship NetX360 professional platform, and advisors can access them through Lockwood’s turnkey managed account solution, Managed360, or by using Pershing’s managed investments platform.
“Emerging and mass-affluent investors can now have greater access to professionally managed investment solutions,” said Hempel. “These investors represent a large, often underserved market. By offering a suite of diversified risk-based portfolios to this segment, advisors and registered reps can serve new clients and take advantage of cross-generational opportunities.”