HOLBROOK, NY—(Marketwired – June 16, 2017) – American Portfolios (AP), a privately–held, independent broker/dealer that services financial advisors across the country, has officially acquired the intellectual property and developmental capabilities of TrustFort, a comprehensive IT solutions provider for the financial industry, in order to foster future strategic business initiatives that will benefit its family of investment professionals. One area within the financial services industry experiencing rapid growth is in fee–based advisory services, for which TrustFort has been instrumental in enhancing AP's proprietary business technology platforms to support this much–in–demand business.
“This technology acquisition enables us to operate according to an entirely new standard of excellence,” CEO Lon T. Dolber says of the exclusive arrangement with TrustFort. “Our proprietary advisory technology platform, Portfolio Insight, benefits investment professionals who conduct fee–based business by allowing them to tailor their back offices and create operational efficiencies that afford them more time strengthening and forging existing and new client relationships. Portfolio Insight is positioned to transform the back offices of our affiliated financial advisors into highly functional, serviceable and profitable businesses, which will continue to keep them, as well as AP, competitively strong.”
Garnering a great deal of focus and lauded by many as the inevitable emphasis of how business in the future will be conducted, fee–based advisory provides investment professionals with a recurring revenue stream and brings a fiduciary responsibility to the advisor–client relationship, resulting in both parties becoming invested in the success of a portfolio. “With the industry moving more and more toward a fiduciary standard, the need exists for us to create and build upon the necessary technology to accommodate that type of business model,” elaborates Gary Gordon, president of American Portfolios Advisors, Inc. (APA), the firm's Registered Investment Advisor (RIA). “We occupy a very important and tactical position within the financial advisor chain, as we're the closet service provider to the advisor. Therefore, we must leverage our unique position and provide our advisors with the most compelling advisory platform. This is why we have devoted the time and resources into developing Portfolio Insight with the needs of our clients — and the end–clients — in mind.”
AP's relationship with TrustFort stems back to 2014, when the IT solutions provider's highly–developed Portfolio Insight software was integrated into American Portfolios' Nine Points Advisory Services Platform, including its advisor– and institutionally–managed programs, as well as Nine Points Investment Management (NPIM) — comprised of research, due diligence, product support and in–house model management. The TrustFort and Nine Points initiatives are part of providing a leading advisory platform created for the firm's affiliated investment advisor representatives (IARs), with which the firm has two objectives: 1) a differentiated offering to expand IAR adoption of the platform, and 2) to provide IARs more products and solutions for their clients via the platform. Among the various goals hinged to this initiative is to expand Portfolio Insight's user base in order to provide a larger marketplace for the firm to create and offer other profitable solutions.
In 2015, American Portfolios Holdings, Inc. (APH) formed the limited liability company, American Portfolios Advisory Solutions, LLC (APAS), to partner with TrustFort. The primary purpose of APAS is to develop and control the intellectual property with respect to an Internet–based wealth management software solution, and provide assistance to APA by developing and utilizing a comprehensive advisory management tool. As a result of combining the technical, platform management and operations teams (which operate out of AP headquarters in conjunction with affiliated operations and development team members located in India through the acquisition), the firm was able to address new capabilities and scale up technology and processes to better serve its customers — affiliated financial professionals — and the end investor in new and better ways. “The acquisition has brought in not just an advisory platform, but also a team of dedicated technology and operations professionals, which when combined with the professionals AP already has in place, is allowing us to accelerate the introduction of new platform capabilities to make our advisors' day–to–day business more efficient,” imparts Atindra Barua, APH board member and former president and CEO of TrustFort.
Since the acquisition, the firm has made considerable inroads providing existing and prospective advisors of AP with an industry–leading advisory services platform. The platform can support outside RIAs, in addition to those investment professionals who choose to conduct business with APA, offering affiliated colleagues the freedom and independence to operate their businesses with more ease and on their own terms.
These strides are in keeping with one of the firm's commitments toward greater platform and technology independence. AP's Portfolio Insight advisory technology platform is rapidly changing the way the firm's advisors conduct business. The platform includes a robust model management and rebalancing tool, which allows advisors to create and manage their own model portfolios. Other functions include a fee detail summary, which automatically totals fees calculated and collected in a selected time period; locking and holding positions within an account or a model; a cash buffer for accounts; and the ability to map an existing position or holding to another. New features forecasted for the coming months include an improved onboarding process for new advisors, a client portal for communicating more effectively and efficiently with customers, an upgrade to the firm's existing operating platforms and providing an integrated platform for advisors to manage their business regardless of where assets reside. Platform enhancements are made on a consistent basis, increasingly building upon the overall functionality and user–friendliness of the tool to the utmost benefit of AP's affiliated advisors.
About American Portfolios
Headquartered in Holbrook, N.Y., American Portfolios Financial Services, Inc. (APFS) is a full–service, independent broker/dealer and member firm of FINRA and SIPC, offering a complete range of financial services, including personal financial and retirement planning, securities trading, mutual funds, access to investment research, long–term care planning, insurance products and tax–free investing. Fee–based asset management is offered through its sister subsidiary, American Portfolios Advisors, Inc., (APA), an SEC Registered Investment Advisor. Both entities, along with technology entity American Portfolios Advisory Solutions, LLC, collectively reside under the legal entity American Portfolios Holdings, Inc. (APH). Full–service securities brokerage is available through a clearing firm relationship with Pershing, LLC, a BNY Mellon firm, the securities of which are held on a fully disclosed basis. The company currently serves 800 independent investment professionals located in 365 branch locations throughout the nation. It was named Broker–Dealer of the Year* (Division III) by Investment Advisor magazine in 2015 and 2016, as well as one of the top five Best Small/Mid–Size Company to Work for in the state of New York for 2016 and 2017 by the New York State Society for Human Resources Management (NYS–SHRM) and the Best Companies Group (BCG).
*Based on a poll of registered representatives conducted by Investment Advisor magazine. Broker/dealers rated highest by their representatives are awarded “Broker/Dealer (B/D) of the Year.”
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