MutualFundWire.com: ALPS and RiverFront Lower Fees

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Friday, August 31, 2012

ALPS and RiverFront Lower Fees

Denver-based ALPS has announced fee reductions for three of RiverFront Investment Group's Global Allocation Series mutual funds, effective today.

In a new expense limitation agreement between ALPS and RiverFront, expenses for the RiverFront Moderate Growth and Income Fund, RiverFront Global Allocation Fund and RiverFront Dynamic Equity Income Fund have been capped at 90 basis points (not inclusive of distribution or service fees, acquired fund fees, taxes, brokerage commissions, and ordinary expenses). Previously, fees had been capped at 1.05 percent.

Corey Dillon, senior VP and director of advisory services, said the fee lowering comes in conjunction with the launch of a fifth mutual fund with RiverFront (see today's Stork and Reaper). He said the latest addition "rounds out" ALPS' product offerings from RiverFront, adding that the mutual fund offerings through ALPS are now "identical" to what RiverFront offers the SMA community.

"The time was right to make a fee reduction across the board," Dillon told the MFWire in a phone conversation. "We're making sure we're putting our shareholders first and giving them every opportunity to succeed."

Regarding the new fund, he added that "for the first time, this gives us a conservative allocation option for investors who still utilize the RiverFront price-matters framework."

"Our primary focus is to provide our financial advisors and their clients the best opportunity to achieve success with our funds and strategies," stated Pete Quinn, president and COO of RiverFront in a press release. "We feel reducing our fund expenses across our suite of funds is one of the ways to achieve this."

Company Press Release

ALPS and RiverFront Lower Fees and Add a New Income Fund
RiverFront Conservative Income Builder Fund the Newest Addition to the ALPS Investment Lineup

DENVER--ALPS – A DST Company announced a 0.15% fee reduction for three of the RiverFront Global Allocation Series mutual funds effective as of August 31, 2012.

As part of a new expense limitation agreement between ALPS, RiverFront, the RiverFront Moderate Growth and Income Fund, RiverFront Global Allocation Fund and RiverFront Dynamic Equity Income Fund, investors will benefit from reduced expenses. The new agreement caps expenses at 0.90%, not inclusive of distribution or service fees, acquired fund fees, taxes, brokerage commissions, and ordinary expenses. Previously, expenses had been capped at 1.05%.

The RiverFront Global Growth Fund remains capped at 0.90% per the terms of a previous expense limitation agreement.

“Our primary focus is to provide our financial advisors and their clients the best opportunity to achieve success with our funds and strategies,” said Pete Quinn, President and Chief Operating Officer at RiverFront Investment Group. “We feel reducing our fund expenses across our suite of funds is one of the ways to achieve this.”

In addition, ALPS and RiverFront launched the RiverFront Conservative Income Builder Fund as a new income option within the ALPS Portfolio Solutions suite of products. Designed to be the most conservative investment option among the five RiverFront Global Allocation Series portfolios, the Fund is expected to have between 30% and 50% of its assets invested in a diversified basket of dividend paying stocks, with the balance of the fund invested in various other income-paying securities.

“ALPS is pleased to offer a new income option within the RiverFront family of funds. The fund strikes a healthy balance between dividend paying potential and diversity,” said Tom Carter, President of ALPS Advisors.

About ALPS

Headquartered in Denver with offices in Boston, New York, and Seattle, ALPS is a twenty-seven-year-old financial services firm focused on asset services and asset gathering. Now with more than 300 employees, nearly 200 clients, and an executive team that’s been in place for over 15 years, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Distributors, Inc. and ALPS Advisors, Inc. As of June 30, 2012, the firm manages more than $6.6 billion in assets and provides servicing to more than $338 billion in client assets. For more information about ALPS and the services available, visit www.alpsinc.com, and for additional information about ALPS products, visit www.alpsfunds.com.

About RiverFront Investment Group, LLC

RiverFront Investment Group, LLC is an independent registered investment advisor located in Richmond Virginia. Majority owned by its employees, the firm provides asset management, investment advice, and leading edge market insights. RiverFront's minority investors include Robert W. Baird & Co. (Baird) and Private Advisors, LLC. For more information, please visit RiverFront's website at www.riverfrontig.com.