Assets surpass $1 billion at ETF specialist Richard Bernstein Advisors

Mar 4th, 2013 | By | Category: ETF and Index News

Richard Bernstein Advisors (RBA), an investment firm founded by former Merrill Lynch Chief Investment Strategist Rich Bernstein, has announced that assets under management and advisement have eclipsed $1 billion in just over two years.

Assets surpass $1 billion at exchange-traded fund (ETF) specialist Richard Bernstein Advisors

Assets under management at ETF specialist Richard Bernstein Advisors have surpassed $1 billion.

Many of the US-based firm’s portfolios are comprised largely of exchange-traded funds (ETFs), including its popular “SMRT” portfolios featuring exclusively First Trust AlphaDex ETFs.

The firm combines a proprietary top-down macro approach to investing with quantitative asset selection, and manages portfolios geared to global asset allocation, global equity allocation, income allocation, and promising undiscovered investment themes.

Rich Bernstein, who holds the firm’s CEO and CIO spots, said: “We are pleased to hit this milestone so quickly, especially given the number of investment products advisors can choose from. We believe it is an endorsement of our style of investing which focuses on risk management and on being in the right assets, sectors, styles, and countries instead of relying on individual stock selection. It is very exciting to see that financial advisors are increasingly appreciating the value-added of ‘beta managers’ like RBA.”

Mr Bernstein added: “The ETF space in particular lends itself well to RBA’s style of investing where individual stock selection is not as important a driver of returns as are size, style, and geography. We expect ETF-based equity and all-asset portfolios and models to be a strong area of growth for RBA in the coming year.”

Portfolios composed largely of ETFs (more than 50%) are commonly known as ETF managed portfolios, and are one of the fastest-growing segments of the managed account universe. In the US, firms such as Windhaven, RiverFront, Innealta and Stadion, in addition to smaller players such as RBA, have accumulated billions in assets. In the UK, the segment is less developed but is gradually emerging, with firms such as Evercore Pan-Asset, SCM Private, WorldTrack, TCF Investment, Marlborough, Seven and T Bailey all offering ETF-focused portfolios.

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