A.G. Edwards Launches Gallatin Asset Management

With the creation of Gallatin Asset Management, Inc., St. Louis based financial services firm A.G. Edwards, Inc., is marketing its existing in house investment management capabilities to third parties such as mutual funds and insurance companies in a subadvisory capacity.

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With the creation of Gallatin Asset Management, Inc., St. Louis-based financial services firm A.G. Edwards, Inc., is marketing its existing in-house investment management capabilities to third parties — such as mutual funds and insurance companies — in a subadvisory capacity. Composed of the firm’s investment and advisory research professionals, Gallatin operates as a stand-alone enterprise and will continue to serve the brokerage firm’s retail client base while providing services for outside institutions.

The firm will earn management fees for the asset management and advisory services it provides third parties as a subadvisor. In this capacity, Gallatin Asset Management will oversee the investments within certain programs offered by outside companies by managing portfolios, providing asset allocation models or selecting portfolio managers. For example, Gallatin recently initiated its first subadvisory relationship with Met Investors Advisory LLC — an offering through MetLife Investors, an affiliate of MetLife — agreeing to provide investment advisory services for two of the exchange- traded fund portfolios within one of the insurance company’s variable annuity products.

“Our new Gallatin subsidiary will grow our assets under management in our advisory programs and enable us to broadly offer our asset management expertise to the institutional market,” said Peter M. Miller, chairman of Gallatin Asset Management, Inc. “By extending our managed money platforms, we will be able to add assets under management without adding significant incremental costs to the firm. At the same time, the management fees generated from these subadvisor relationships will add a new source of income to help us expand our overall revenue stream.”

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