Associated Securities Corp. provides advisors with a wide variety of investment instruments and programs that enable them to help meet the diverse needs of their sophisticated client base. Associated Securities does not produce or market any proprietary products so representatives can make recommendations guided solely by the best interests of their clients.
Associated Securities' brokerage services provide access to
- Stocks
- U.S. Government securities
- Corporate bonds
- Tax free municipal bonds
- Money market accounts and certificates of deposits.
In addition, Associated Securities Corp. has selling agreements in place to offer a wide range of Real Estate Investment Trusts (REITs), Direct Participation Programs (DPPs) and Unit Investment Trusts (UITs).
The Associated Securities Corp. Mutual Fund Marketing department offers Advisors access to a broad range of mutual funds. The Marketing team is dedicated to providing Associated Advisors all the information and tools they need to select and recommend those investments that are best suited to their clients' risk tolerance and investment objectives.
The Associated Securities Corp. Annuity and Insurance Marketing Department offers Advisors a simplified and seamless approach to incorporate annuity and insurance products in the financial planning process.
Associated Securities' experienced insurance and annuity specialists offer advisors product research, computerized product comparisons and application processing assistance. Associated Securities also has access to the legal and advanced design staff of Pacific Life. Educational efforts include product-specific information, as well as Continuing Education programs and updates on legislation affecting the annuity and insurance industry.
Associated Securities gives the advisor total flexibility as to where to place their fixed insurance business. Associated Securities has strategic alliances with a wide range of insurance marketing organizations and insurance companies in order to help meet Advisors' needs. Advisors have access to a portfolio of products including:
- Life Insurance
- Group Health Insurance
- Fixed Annuities
- Disability Insurance
- Long Term Care Insurance
- Medical Supplements
- Life Settlements
- Variable Annuities
Associated Securities Corp. was one of the first independent broker/dealers and Registered Investment Advisors (RIA) to understand the importance of fee-based programs for both Advisors and their clients. Its RIA affiliate, Associated Planners Investment Advisory, Inc. (APIA) provides an open architecture investment program that offers Advisors an array of fee-based investment solutions including financial planning.
Associated Securities understands that Advisors with their own portfolio modeling may require more flexibility to effectively manage their accounts. In order to accommodate their practice needs and facilitate portfolio rebalancing, APIA permits Advisors to manage accounts on a discretionary basis under specified circumstances. APIA also provides an array of state-of-the-art support products and services, including central research, trading and operations department and comprehensive marketing support.
CAMP PREMIER provides Advisors with the flexibility to actively manage client assets and to personalize the portfolios in fee-based accounts. Advisors may manage accounts on a discretionary or non-discretionary basis. Advisors may design a full wrap account or establish a fee-based structure on an account-by-account basis. CAMP Premier provides access to timely investment research, 3000+ mutual funds at NAV, individual securities and variable annuities.
CAMP SELECT offers Advisors the opportunity to select from an array of carefully screened professional money managers. CAMP Select's variety of Portfolio Managers provides Advisors access to fee-based accounts, turnkey mutual fund wrap programs and separately managed accounts. CAMP Select provides Advisors with access to a wide range of investment styles, programs and services. Portfolio Managers include: AssetMark Investment Services; GE Private Asset Management; Nationwide Advisory Services; Prudential Managed Assets; Mellon Investments; and Lockwood Advisors.
VALUE-ADDED FEATURES OF A FEE-BASED PRACTICE
The financial services industry has truly changed. Technology has provided investors with unprecedented access to investment information. They are now able to execute trades quickly and efficiently. To attract and retain clients, Advisors must provide value-added in the form of advice and improved services. Fee-based programs can help solve some of these dilemmas by helping to meet clients' needs while, at the same time, bringing consistency and predictability to an Advisor's compensation.
| FOR YOU | FOR YOUR CLIENTS |
Larger accounts. The average wrap ticket size is nearly 10 times greater than the average non-wrap ticket size. Recurring income stream. Fee-based programs help ensure consistent compensation with quarterly payments based on total assets. Stronger, more trusting client relationships. Clients may come potentially to view their Advisor as someone sitting on their side of the table. Concrete process for closing new business. Wrap-fee programs help Advisors engage in new business opportunities on a regular basis. More efficient use of time. Advisors may spend time acquiring new clients and new money, instead of looking for the 'next thing' to sell. |
Focus on process, rather than product. Clients engage in a clearly defined, disciplined and objective investment approach that truly addresses their individual needs. Depth and breadth of team approach. Clients have access not only to their Advisor's knowledge and experience, but also to a team of professionals that makes asset allocation and investment recommendations. Account consolidation. Clients can consider all of their assets when making investment decisions. Fee flexibility and elimination of up-front and back-end loads. Ongoing consultation based on quarterly performance reviews. Better systems and services. Fees can provide funding for new firm initiatives. |
There are three basic conversion plan options, each of which has important implications for both Advisors and their clients.
Convert 100% of Clients Immediately
Although this approach can simplify the process, it can be very overwhelming and financially trying. Associated Advisors have found that 90 percent of clients made the transition when presented with the opportunity.
Convert New Assets Only
Maintain old practices for existing clients and enlist all new clients in wrap programs. While this approach significantly lessens the financial impact, many Advisors report that they end up feeling like two different people with two completely different practices.
The Hybrid Approach
Enlist all new clients in wrap programs while gradually moving existing clients in that direction. Existing clients generally perceive this simply as a business shift. The following scenario illustrates how a four-year transition using the Hybrid Approach might work:
Current Assets Under Management: $35 million
Average Revenue: 25 bps
New Assets Per Year: $5.5 million
Average Dealer Gross on New Assets:4.25%
Current Dealer Gross (commissions and trails): $321,250
Estimated Convertible Amount (60%): $21 million
At the end of year four, 40% of the book remains in commissions, while 60% of has been converted to fees and 100% of new business is in fee-based programs. This is a hypothetical example for illustrative purposes only and does not represent the conversion of any actual book of business to a fee-based model.
*Fee based accounts are not suitable for all clients.