Raymond James' investment management arm will launch its first exchange-traded funds in 2025. The firm has hired Mo Sparks, former head of exchange-traded products at the New York Stock Exchange, as head of exchange-traded funds. scholarship, a newly created position.
He joins Raymond James Investment Management on July 22 and will lead the firm's efforts to develop an ETF platform.
Sparks will work with Matt Johnson, head of product management and marketing, to determine the right products for the launch. The firm has no immediate plans to convert any of its existing mutual funds into ETFs, but will consider putting “high-demand investment strategies” in Raymond James Investment Management and its affiliates into ETF wrappers.
Bob Kendall, president of Raymond James Investment Management, said in a statement that the launch of the ETF was part of the firm's “overall goal of providing greater choice to select investment strategies in high demand.”
“The data shows record inflows, but also, our clients have been vocal with their interest in our strategies in an ETF wrapper,” said one. Raymond James Investment Management (RJIM) spokesperson. “As the ETF structure has evolved to include more capabilities within the product wrapper, we saw this as the right time to expand into this space.”
Raymond James advisors will not be incentivized to recommend or use its home-grown ETFs with clients, nor will they receive any fee rebates, which is consistent with the firm's other proprietary investment products.
Sparks spent the last five years at the NYSE advising more than 125 asset management firms on their entry and business development efforts in the ETF market. This included instructions for product development, organizational design, selection of service providers, sales training, and distribution and marketing activities. He also oversaw the launch of ETF Central, an educational website for ETF investors and advisors.
Prior to that, Sparks served as head of product technology and analytics at Vanguard, where he was responsible for initiatives focused on improving product development, launch and process monitoring globally.
“I am eager to build this platform into such a well-respected organization in support of the needs of emerging investors – and excited to bring together the capabilities of RJIM and its boutique investment managers with the accessibility and tax efficiency that wrap provides ETF,” Sparks said in a. statement.
Raymond James' investment management division currently manages mutual funds, separately managed accounts, CITs, UCITS and institutional mandates. Through a series of acquisitions, the firm has built its asset manager, which now has $102.7 billion in assets. Its boutique managers now include Scout Investments, Reams Asset Management, Eagle Asset Management, ClariVest Asset Management, Cougar Global Investments and Chartwell Investment Partners.