A news release said the A.G. Edwards MSP option will provide clients four different models, each based on the strategic asset allocation recommendations from the A.G. Edwards Investment Strategy Committee. Each account holder’s individual investment goals will be considered and then matched to the most appropriate MSP model. Together the four models cover asset allocation ranging from full equity to allocations that include weightings in fixed income.
Gallatin Asset Management, a wholly owned subsidiary of A.G. Edwards, Inc., will provide oversight in the choice of the investment managers that will be employed for each of the models. Consisting primarily of equity securities, the models may also utilize exchange-traded funds (ETFs) to help balance the allocation.
A.G. Edwards has arranged for the help of Parametric Portfolio Associates, a Seattle-based money management firm, to help bring the pieces of these accounts together by providing overlay portfolio management. To participate in the MSP program, a $250,000 minimum investment is required, and program fees will begin at 2.5% to 2.75%, depending on the model chosen, the news release said.