By acting as a partner and support mechanism for the Private Client Group (PCG), AMS experienced significant benefits from advisor growth. Macro industry trends and factors such as the partial implementation of the Department of Labor’s (DOL) Fiduciary Rule, which accelerated the shift to fee-based account utilization, also played a notable part in AMS’s strong results.
With many advisors deciding to move their smaller accounts to a fee-based solution, AMS was well-positioned to manage these accounts through the Freedom Foundation platform. This account solution was designed to offer advisors an efficient way to diversify smaller accounts with high-quality, professional managers, while building the framework for ongoing, multigenerational relationships. With the DOL rule as a tailwind, and combined impressive effort by the sales and operations teams, the Freedom Foundation platform has raised $1.1 billion in assets under administration.
Another significant achievement for AMS in 2017 was the continued exploration of synergies with other parts of the firm. One of the most prominent results of this endeavor was the introduction of Raymond James Research Portfolio, an investment strategy with the objective of generating a steady stream of dividend income. The portfolio, which has raised over $600 million in 18 months, was built in-house using the intellectual capital of Equity Capital Market’s Equity Advisory Group, combined with the expertise of the AMS Investment Committee.
Looking forward, we anticipate macro-trends to provide opportunities to expand our product offerings, and will continue to collaborate with PCG to offer advisors solutions for their client needs.
Carillon Tower Advisers was introduced in January 2016 to provide greater flexibility for the firm to add new investment affiliates to its asset management lineup. Despite industrywide headwinds for actively managed investments, this division experienced modest new inflows during the fiscal year.
The investment management firms affiliated with Carillon Tower – St. Petersburg, Fla.-based Eagle Asset Management, San Diegobased ClariVest Asset Management and Toronto-based Cougar Global Investments – generated more than $7 billion in sales for the 2017 fiscal year. This was driven by a broad distribution network and strong investment performance with almost 80% of strategies outperforming their benchmarks over the preceding five-year period.
Our work to expand internationally yielded positive results this year, as ClariVest Asset Management extended its global reach by securing institutional business in Australia. Additionally, as we expand our income generating strategies, Eagle Asset Management launched the Vertical Income Portfolio for retail investors, which is designed to provide income through both dividend-paying and fixed income vehicles. Eagle Asset Management is also seeing increased interest in its institutional Micro Cap Core Portfolio.
As we look forward, we expect continued ability to perform as we leverage our existing firms’ expertise while benefiting from the November 2017 additions of two affiliates that nearly doubled Carillon Tower’s assets. Scout Investments, a mid-cap and international equity specialist, and its Reams Asset Management division, an institutional fixed-income specialist, will bring many years of well-recognized expertise, offering new investment solutions for current clients and the opportunity for existing affiliates to extend their reach into new sales channels.
Thoughtfully growing to better serve clients
Carillon Tower Advisers welcomes equity-focused Scout Investments and institutional-fixed income specialist Reams Asset Management to its multi-affiliate platform.
Building on a strong foundation of asset management expertise and partnership, Carillon Tower is focused on providing clients with sophisticated and accessible investment options. In November, Raymond James completed the purchase of Scout Investments and its Reams Asset Management division from UMB Financial Corp.
From left to right: Court James, Executive Vice President; Carrie Gill, Principal Financial Officer and Treasurer, Carillon Funds; Susan Walzer, Esquire, SVP/Principal Executive Officer, Carillon Funds; Cooper Abbott, President & Chairman; Aaron Ochstein, Global Director of Sales; Renee Baker, DBA, Chief Marketing Officer; Mike Edwards, Head of Affiliate Development
Founded in 1982, these new partners bring a range of long-term relationships and approximately $27 billion under management and advisement.
“As with all additions to the Raymond James family, Scout and Reams bring complementary cultures and management philosophies to the asset management division," said Raymond James Chairman and CEO Paul Reilly.
Scout and Reams join multi-affiliate, multi-channel platform Carillon Tower Advisers, a global asset management firm and wholly owned subsidiary of Raymond James, offering a suite of distribution and operational support capabilities to independent portfolio management teams. As a result of this acquisition, Carillon Tower will distribute Scout and Reams investment products worldwide.
“We are pleased to welcome Scout and Reams to the Carillon Tower family and excited that we will be able to offer our clients a broader set of investment solutions,” said Carillon Tower President and Chairman Cooper Abbott, CFA. “The addition of these well-recognized franchises to our multi-boutique model is a natural extension of our long-term growth strategy.”