RIA Access To Hedge Funds Expanding, Study Says
Contrary to popular belief, independent financial advisors have more access to quality hedge fund managers than their counterparts at wirehouses, according to a recent study.

At a time when independents are looking for more and better ways to solidify their relationships with their clients or prospective clients, that is a particularly important revelation, according to HighTower, a national advisor-owned financial services firm.

Over the past three years, HighTower has gathered data on the availability of alternative investments and hedge funds to wirehouses and to independent advisors through interviews with more than 500 high-net-worth advisory teams, resulting in the report Redefining the Horizon: Shedding Light on Independent Advisor Access to Hedge Funds.

The goal of the study was to explore and demystify the complex world of alternative investments for advisors, including the availability wirehouses and independent financial advisors have to hedge funds.
More advisors will be going independent as fee-only fiduciaries and will dominate the retirement investment market for years to come, HighTower says. At the same time, the availability of alternative investments for independents advisors increased by 46% between 2008 and 2010.

The unanticipated revelation of the study, HighTower says, is that independent firms have access to at least four times as many hedge funds as wirehouses. Independent advisors have access to the funds through wirehouse-like platforms, plus they have access to funds not available through wirehouses.

More asset managers are now focusing their alternative investment distribution efforts on independents than on wirehouses, banks and other non-independent outlets.  Asset managers were putting their primary focus on independents 73% of the time in 2010, compared to 46% in 2008, and it is one of the few channels where asset manager efforts increased rather than decreased, according to the study. They decreased efforts aimed at private banks, wirehouses, broker/dealers and insurance companies.

The survey shows independent advisors have significant access to 80% of the largest hedge funds-the same hedge funds that are available to the wirehouses and to many more.

"On average, wirehouses offer access to 15 to 20 hedge fund managers, while independents can choose from potentially 50," Matthias Kuhlmey, head of group investment solutions at HighTower, says. "And asset managers are ramping up their efforts to work with RIAs.
"This data demonstrates that the number of independent platforms offering alternative funds is growing," Kuhlmey adds.  "Some of these specialized firms were formed recently, indicating that alternative platforms are multiplying and gaining in popularity. This presents a number of opportunities for independents to access alternative products."

Tiger 21 Expands To Nation's Capitol
TIGER 21 may sound like a sports team, but in reality it is an organization of ultra-high-net-worth individuals with chapters across the country, and it is opening two new chapters in Washington, D.C.

TIGER 21 was founded in 1999 to allow wealthy individuals to exchange ideas, investment advice and personal experiences in a non-promotional, private setting. There are branches in New York City, where it is headquartered, Los Angeles, San Francisco, San Diego, Miami and Dallas, and Canadian groups in Vancouver, Toronto, Calgary and Montreal.

Two new chapters are being formed in Washington, D.C., and will be under the guidance of Cal Simmons, a business executive, venture capitalist and angel investor.

TIGER 21, which stands for The Investment Group for Enhanced Results in the 21st Century, meets once a month so members can discuss wealth issues.

A secure Internet connection allows members to communicate with members of different chapters and each chapter gets together for a daylong meeting once a month, according to the organization. One exercise the groups perform when they meet is to have members defend their investment and asset allocation choices to the group.

The organization views investment education as a lifelong experience. "There are many fine educational and networking clubs in DC, but none that offer high-net-worth individuals the opportunity to exchange best-of-breed ideas and investment strategies on the opportunities, challenges and responsibilities of wealth," Simmons says. "I see our members benefiting from each others' insights, as well as the sharing of investment prospects."

CBRE Group Acquires Asian Real Estate Unit
CBRE Group Inc. has acquired ING Group NV's real estate investment management operations in Asia.

Combined  with the acquisition in July of ING Clarion Real Estate Securities, CBRE investors' assets under management now total $63.6 billion.

The new acquisition is being merged with CBRE's existing real estate investment management operations in Asia. CBRE's acquisition of ING REIM's operations in Europe remains on schedule to close this quarter.

The total purchase price for the three IMG businesses is $940 million.

Richard Price, who was ING REIM's Asia leader, will serve as CEO of the combined company's Asia Pacific investment management platform.

-Karen DeMasters

On The Move

Baird has announced that veteran financial advisors Alexander Cushner and Russell Huebschle have joined the firm's San Francisco wealth management office. Cushner has been named managing director and Huebschle is vice president. Baird continues to expand its wealth management business throughout northern California with the addition of nine wealth management professionals, including five financial advisors, to the San Francisco office since March.

U.S. Trust has named Raymond Piacentini, a 30-year industry veteran, as northeast managing director. Piacentini, who will be based in New York, will work with professionals across U.S. Trust to meet the unique needs of the firm's clientele of high-net-worth individuals and families', spearheading U.S. Trust's expanding wealth management capabilities.

Neuberger Berman has opened a new office in Buenos Aires, Argentina. The office is the first in Latin America for New York-based Neuberger Berman, which now serves its global client base from 25 cities in 11 countries in North America, South America, Asia, Australia, and Europe.

Morningstar Inc. has announced that Greg Goff has joined the company as chief technology officer. Goff will be responsible for Morningstar's global technology strategy. Goff joins Morningstar from The Nielsen Company, where he served as senior vice president of global platform technology.

Sue Crosby has joined Mercer as a partner in the firm's investment consulting business, based in New York. Crosby will focus on growing Mercer's Implemented Consulting business and will support the firm's growing Endowment and Foundation Consulting practice. Mercer's commitment to both of these areas was strengthened by the recent acquisitions of Hammond Associates in St. Louis and Evaluation Associates of Norwalk, Conn.

-Kathy Lynch