Lockwood Advisors, a subsidiary of Bank of New York, announced Tuesday that it is offering three registered, no-load hedge funds from Ivy Asset Management, itself a subsidiary of the Bank of New York and Oppenheimer/Tremont. This is part of the firms plan to expand beyond separately managed accounts to appeal to a wider reach of financial advisers (see MME 6/20/03).
"As Lockwood pursues its platform expansion program, we will launch additional products, including a passive municipal bond product, a mutual fund wrap program, a mutual fund supermarket and an overlay separate account platform," said Christopher W. Tomecek, president of Lockwood. The firm expects to offer all of these products by mid-summer.
"Because these are registered products, the eligibility requirement, in terms of an investors net worth, is lower than the eligibility requirements in many private placement hedge funds," Tomecek said.
"Right now we are an exception business," Tomecek said. "Advisers turn to us on the exception when their customers need a managed account. But not many independent financial advisers have an average household size of over $1 million. Advisers like the way we do business; we are just too far upstream. Hopefully, this platform will give us the opportunity to discuss their smaller book of business."