Bolton cuts advisor fees with managed accounts platform deal

Bolton Global Capital has reduced the fees it charges its network of advisors after signing on to Pershing’s managed accounts platform.

The independent broker-dealer and RIA was able to bring down the fees for its managed account assets after adding the Pershing Managed Accounts Central (MAC) platform to its technology solutions at the start of the year, Ray Grenier, Bolton’s CEO, told Citywire.

Pershing’s MAC platform was officially launched at the end of 2021 and allows both domestic and international wealth managers to manage their fee-based investment advisory accounts, regardless of custodian, through one platform.

Grenier said they had negotiated a deal with Pershing, which is owned by BNY Mellon, that provides its advisors with access to the MAC platform to run their clients’ managed accounts for 50 to 70 basis points annually.

‘We brought on this platform that allows us to do SMA and UMA at a low cost,’ said Grenier. ‘Typically for an international broker-dealer or major SMA platform the cost is around 90-100 basis points [for managed account assets].’

The MCA platform essentially eliminates the need for advisors to toggle between multiple platforms by providing a one-stop solution that will display information on portfolio performance, account holdings, and asset allocation across custodians. In addition, the platform features investment research and model management capabilities.

Pershing announced it was prepping the launch of the MCA platform last June. At that time, Sarah Chain, Pershing’s director of global strategy and product management, said: ‘As investments in managed accounts grow, so does the need to streamline the process of running these accounts.

‘Our new offering is designed to address that need. It will prove critical in helping advisors realize new efficiencies so they can focus on delivering holistic advice.’

Grenier said Bolton’s advisors had already moved over $1bn of their client assets onto the platform and it had proven to save them valuable time.

‘It has made our workforce about 25% more productive. It also provides our clients with a fully cybersecure environment.’

Grenier added: ‘In today’s environment you have to lower costs. You have to be able to provide a full fee-based platform at a low cost, that is a key building block for the future.’

Grenier revealed to Citywire last week that Bolton had launched a new client concierge platform as it looks to expand its range of services.

Bolton Global Capital has 115 advisors on its independent network that oversee more than $12bn in client assets.