Raymond James’ investment management arm will launch its first exchange-traded funds in 2025. The firm has hired Mo Sparks, the former director of exchange-traded products at the New York Stock Exchange, as head of exchange-traded funds, 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 exact products for the launch. The firm has no immediate plans to convert any of its existing mutual funds into ETFs, but it will consider putting “high-demand investment strategies” across Raymond James Investment Management and its affiliates into ETF wrappers.
Bob Kendall, president of Raymond James Investment Management, said in a statement that the ETF launch was part of the firm’s “overall goal to give broader choice to select, high-demand investment strategies.”
“The data shows the record inflows, but also, our clients have been vocal with their interest in our strategies in an ETF wrapper,” said a spokesperson for Raymond James Investment Management (RJIM). “As the ETF structure has evolved to include more capabilities within the product wrapper, we viewed 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 discounts, 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. That included guidance on product development, organizational design, service provider selection, 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 enhancing product development, launches and monitoring processes globally.
“I am eager to build this platform at such a respected organization in support of evolving investor needs–and excited to pair the capabilities of RJIM and its boutique investment managers with the access and tax efficiency that the ETF wrapper provides,” 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 out 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.