RIAs now can access socially responsible
investing strategies through Model Market Center™
With growing numbers of Americans looking to invest in companies
that express their environmental, social and governance (ESG)
values, TD Ameritrade Institutional1 is making more of these
investment choices available to independent registered investment
advisors (RIAs) for their clients.
Demand for ESG investment options – also known as impact, green
or sustainable investing -- is on the rise as more investors look
to avoid or support industries that align with their values.
Total U.S. assets in socially responsible investments grew by a
third to $8.72 trillion between 2014 and 2016, according to the
most recent report by the US SIF Foundation2, roughly one-fifth of
the $40.3 trillion in total U.S. assets under management3.
Meanwhile, one in three RIAs have seen increasing client interest
in socially responsible investing over the past year, according to
a recent TD Ameritrade Institutional client survey4.
“Socially responsible investing is increasingly important to
some investors, so we want to equip advisors with tools that can
help clients express their values through their portfolios,” said
Dani Fava, director of product strategy & development at TD
Ameritrade Institutional. “Building socially responsible strategies
can be challenging, requiring time and expertise, so we’re working
to make it easier for advisors to provide them.”
RIAs that custody assets with TD Ameritrade Institutional now
have three ways to help provide socially responsible investments to
their clients.
Through the Model Market Center platform, RIAs can access
investment models that may meet their criteria for ESG,
controversial business involvement or carbon footprint. With a few
clicks, advisors can invest a client’s assets in a way that they
feel meets sustainable standards and the client’s overall risk
tolerance. These models are currently available to advisors at no
additional fee and with no investment minimum for assets held at TD
Ameritrade Institutional.
Advisors on the Veo® brokerage platform also can apply a
screening tool to identify 559 mutual funds that have identified
themselves as socially responsible and are open to new investors,
including 234 funds that can be traded commission-free.
Likewise, advisors who use TD Ameritrade’s ETF Market Center can
use screening tools to find and access 63 ETFs identifying
themselves as socially responsible, including eight commission-free
offerings.
NextGen Appeal
Socially responsible investing may appeal to all ages, and to
millennials in particular. According to Spectrem Group5, more than
half of millennials say they make investing decisions based on SRI
factors, compared with more than 40 percent of Gen X and baby
boomer investors.
“Millennials are looking around and not liking what they see.
They are telling us that they want their values expressed in their
investment portfolios,” said R. Thomas Manning Jr., CFA, chief
executive and president of F.L.Putnam Investment Management
Company, a Boston-area RIA with 60 percent of its $1.7 billion
invested using ESG criteria.
Manning notes that investors do not have to sacrifice
performance when pursuing a sustainable approach. In fact, ESG
factors can help investors measure risks that are not always found
in a company’s financial statements.
“There’s this myth that sustainable investing means giving up
returns, but after 35 years of using an ESG-based approach, we know
that is simply not true,” Manning said.
“There’s a real appetite for socially responsible investing
among new and existing clients, and yet many firms don’t offer this
as an area of expertise,” said J.D. Bruce, president of Abacus
Wealth Partners in Santa Monica, Calif., which oversees about $2
billion in assets. “We’ve been incorporating social factors into
our client’s investments for decades, and since 2009 we've included
environmental screening in virtually all of our portfolios.”
Launched in October 2017, Model Market Center allows advisors to
tap the brain power of money managers from their desktops,
potentially reducing time spent building investment models from
scratch and develop in-house expertise. Advisors subscribe to
investment models and can then leverage the TD Ameritrade iRebal on
Veo portfolio-management technology to incorporate the models into
their client’s portfolios.
To Learn More
To learn more, TD Ameritrade Institutional clients can contact
their relationship manager. Other advisors are invited to call
(800) 934-6124.
Carefully consider the investment objectives, risks, charges
and expenses before investing. A prospectus, obtained by calling
800-400-6288, contains this and other important information about
an investment company. Read carefully before investing.
Material made available through the Model Market Center is
provided by third-party Model Managers who are separate from and
unaffiliated with TD Ameritrade. TD Ameritrade has not paid for or
been involved in the preparation of the content, and has not
verified, endorsed or approved the content. TD Ameritrade assumes
no responsibility for any fact, recommendation, opinion or advice
contained in any such model portfolio or materials and expressly
disclaims any responsibility for any investment decisions or for
the suitability of any security or transaction based on it. Any
mention of specific managers and/or models should not be considered
an endorsement or recommendation by TD Ameritrade. Users of Model
Market Center are responsible for all upfront and ongoing manager
and model due diligence.
Model Market Center is an offering of TD Ameritrade, Inc.
Registered Investment Advisor (RIA) that leverages iRebal® on Veo®
technology to provide independent RIAs access to model portfolios
provided by third-party asset managers. iRebal products and
services are property of ThinkTech, Inc., an affiliate of TD
Ameritrade, Inc.
Information provided by TD Ameritrade, including without
limitation that related to the ETF Market Center and
commission-free ETFs, is for general educational and informational
purposes only and should not be considered a recommendation or
investment advice.
Particular commission-free ETFs may not be appropriate
investments for all investors, and there may be other ETFs or
investment options available at TD Ameritrade that are more
suitable.
ETFs purchased commission-free that are available on the TD
Ameritrade ETF Market Center are available generally without
commissions when placed online in a TD Ameritrade account. Other
fees may apply for trade orders placed through a broker or by
automated phone. TD Ameritrade receives remuneration from ETFs and
mutual funds and/or their managers that participate in the MMC for
administrative and/or other services.
1 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding
Corporation.
2 The Forum for Sustainable and Responsible Investment, Report
on US Sustainable, Responsible and Impact Investing Trends,
November 2016.
3 Cerulli Associates, The Cerulli Report, U.S. Advisor Metrics,
2017.
4 TD Ameritrade Institutional, email survey of 85 RIA clients,
administered by Medallia, March 19 - April 26, 2018.
5 Spectrem Group, Socially Responsible Investing, 2016.
About TD Ameritrade InstitutionalTD Ameritrade
Institutional is a leading provider of comprehensive brokerage and
custody services to more than 6,000 fee-based, independent RIAs and
their clients. Our advanced technology platform, coupled with
personal support from our dedicated service teams, allows
investment advisors to run their practices more efficiently and
effectively while optimizing time with clients. TD Ameritrade
Institutional is a division of TD Ameritrade, Inc., a brokerage
subsidiary of TD Ameritrade Holding Corporation.
About TD Ameritrade Holding CorporationTD Ameritrade
provides investing services and education to more than 11 million
client accounts totaling more than $1.2 trillion in assets, and
custodial services to more than 6,000 registered investment
advisors. We are a leader in U.S. retail trading, executing more
than 940,000 trades per day for our clients, nearly a quarter of
which come from mobile devices. We have a proud history of
innovation, dating back to our start in 1975, and today our team of
10,000-strong is committed to carrying it forward. Together, we are
leveraging the latest in cutting edge technologies and one-on-one
client care to transform lives, and investing, for the better.
Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or
read our stories at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
/ SIPC
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version on businesswire.com: https://www.businesswire.com/news/home/20180516005098/en/
TD Ameritrade Holding CorporationJoseph A. Giannone,
201-369-8705Communications + Public
Affairsjoseph.giannone@tdameritrade.com
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