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LPL Financial expands MWP platform


Broker-dealer LPL Financial has expanded its Model Wealth Portfolios (MWP) platform through the addition of two new portfolios from LPL Financial Research as well as two managed alternative investment portfolios from Fortigent.

The expansion provides access to the two new models designed by LPL Financial Research using their proprietary quad-core approach to create bond like exposure without holding bonds as well as Fortigent’s alternative strategy models designed to capture performance with lower volatility in client portfolios.

MWP is a centrally managed, fee-based platform that enables LPL Financial advisers to provide client-centric, theme-based investment portfolios for a broad range of investors.

The two new offerings from LPL Financial Research – the Quad-Core Balanced and Quad-Core Income Portfolios – extend the proprietary "Quad-Core" strategy that is currently offered on the MWP platform through the Absolute Return Portfolio. The Quad Core is a four-pronged methodology intended to provide a more diversified approach to portfolio management. This approach includes allocations to the opportunistic ideas of LPL Financial Research and the diversifying ideas from other managers to drive alpha and income and then leverages non-correlated alternative strategies and hedging strategies to control the beta, or market sensitivity, of the portfolios.

The new Quad-Core Income Portfolio seeks to replicate or beat the performance of core bonds while generating more income and the Quad-Core Balanced Portfolio seeks the return of a traditional 60/40 stock-bond portfolio with little or no sensitivity to rising interest rates.

Fortigent, a provider of wealth management solutions to advisers serving the high net-worth market, is a wholly owned subsidiary of LPL Financial. The new strategies added to the MWP platform enable LPL Financial-affiliated advisers to benefit from Fortigent’s background and expertise in alternative investments. The two portfolios – the Alternative Strategies and Alternative Strategies – Enhanced portfolios – are geared to capture the performance of traditional equity / fixed income portfolios, but with lower volatility, reduced potential for loss of capital and lower correlation with other asset classes.

John Moninger (pictured), LPL Financial executive vice president of advisory and brokerage consulting services, says: "As financial markets continue to evolve, LPL Financial is committed to providing our advisers with the strategies they need to help their clients progress toward their long-term goals. The expansion of the MWP platform to include two new portfolios from LPL Financial Research, along with two alternative investment strategies from Fortigent, gives our advisors the tools to address an even wider range of client needs, while accessing the diversification and risk-management benefits that come from non-correlated alternative strategies."

Scott Welch, senior managing director, investment research and strategy for Fortigent, says: "We are excited to be working with LPL Financial to put our experience in the alternative investment markets to work for their affiliated advisors through the MWP platform. In this volatile environment, advisors and their clients are looking for strategies that offer the potential for consistent returns along with attractive risk characteristics and diversification benefits. We are glad that we can help LPL Financial advisors respond to this demand for leading-edge alternative strategies through our participation in the MWP platform."

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