BlackToro has made headway in the United States with an RIA model that advises clients solely to enhance their portfolios without conflicts of interest, Gabriel Ruiz, president and founder of BlackToro, told Funds Society.
The industry executive commented that the trend will increasingly be to charge for independent advisory services and focus on research and technology to improve client returns without conflicts of interest.
“If I don’t need to make transactions to earn commissions, I have more independence to do my job and improve my clients’ returns,” Ruiz explained.
According to the founder of BlackToro, “the greatest market need is to see efficient portfolios” for the benefit of the client.
Ruiz, who was the founder of Delta Asset Management and also worked for Santander, Scotiabank, and Raymond James, added that the advisory system is a scheme that favors transparency and loyalty to the client.
However, the BlackToro partner clarified that this is not a value judgment against broker-dealers and acknowledged that there are end clients with extensive financial knowledge who are interested in managing their portfolios without independent external advice and only need a broker-dealer to transact and offer specific investment products.
A Multi-Platform Service
BlackToro has several custodians as a possibility of more freedom for the client.
“Being multi-platform allows us to be broader in our offering, but you have to be generating value all the time,” Ruiz clarified.
The partners of BlackToro and their background in asset and wealth management have “a strong focus on investment selection analysis teams.”
According to Ruiz, the study for portfolio creation starts from a macroeconomic perspective and “from macroeconomics, we drill down thanks to our strong team of macroeconomists.”
BT VALO
Just a few days ago, BT Valo was formally registered as an RIA Investment Advisor.
BT VALO is a new company born from a strategic alliance between VALO | Banco de Valores S.A. and BlackToro, aiming to provide investment advice linking the financial markets of the US and Argentina.
The agreement with Banco de Valores is very positive for BlackToro because it has many decades in the Argentine industry and is a service bank, which makes it “very special and professional,” Ruiz added.
In addition, “it is a leader in what it does, debt issuance, trusts, and is a leading custodian of investment funds.”
“The partnership between BlackToro and VALO, which takes on the name BT VALO, is a Miami-based joint venture, with a 50/50 split between the two firms, where VALO handles commercial relationships and BlackToro manages the portfolios,” he concluded.
