A published article on Fund Intelligence discussing what Premia Global Advisor's founding partner, Miguel Sosa is looking for from distribution partners.
Merrill Veteran Turned RIA - "What I want from distributors now that I am independent"
1. Article for Fund Intelligence
Date: February 13, 2019
What I want, and How I want it.
Since its inception, Premia Global Advisors, located in Coral Gables, Florida, has developed a very well
known and highly respected business practice. This practice is a result of our clear focus to give non-US
investors the opportunity to manage their investments by accessing quality investments and innovative
ideas using an open investment platform.
Having spent over 33 years at Merrill Lynch, it was the goal of Premia Global Advisors in becoming an
Independent Registered Investment Advisor (RIA) to bring the combination of experience with
accessibility to helping manage our client’s investment portfolios. We wanted to develop close ties to
our clients and to help them make wise investment decisions. We wanted to replicate as close as
possible a multi office investment service.
We soon discovered that we were drinking from a firehose. In other words, the world of opportunity
had opened but that meant that we were now more intimately involved in the decision making of which
investments to recommend and the clear understanding of the characteristics of each.
We were now faced with the challenge of selecting from a wide field of choices.
Challenged with this we decided to leverage our relationships with wholesalers and other fund
executives to gain a deeper understanding of what worked best and was most suitable for our clients.
By establishing an in-house model portfolio that was basically a combination of Equity, Fixed Income,
and Cash at the core and Alternative Investments as enhancements, we could begin the process of
improving how the portfolio would be managed and allocated, in order to reach the goal of providing an
enhanced performance, and possibly doing it with less risk, to a basic portfolio. To this end we decided
to approach this by sharing with anyone that wanted to offer us investment solutions, our model and
focus the conversation to what investment ideas they had that could do better than what we had. All of
this being tailored to our non-US clients.
By using this approach, we were able to find best in class opportunities for each investment category.
Our use of meeting times was greatly more efficient. We focused our conversations on what mattered
to us and not what was being pitched at the time. We were able to leverage our relationships so that
we were always looking at how something that was being offered was better than what we were using.
Challenging the distributors to explaining to us why their offering was better. Conversations were more
focused and tailored to our needs.
The last quarter of 2018, and into 2019, have been opportunities to field test the portfolios. We have
seen how our product distribution relationships have reacted to the challenges and onslaught of a
correction, that by some measures was a mini Bear Market. We had the opportunity to have poignant
discussions with each product provider about the particular investment choices we had made and
thereby not wasting time discussing general offerings which don’t play a role in our portfolios.
We currently use ETFs/UCITS for our clients. Whether we use one or the other mainly depends on how
their accounts are structured. We are careful to align the portfolio to each client’s legal structure and
2. needs. We keep informed of the everchanging world of regulations and restrictions that apply to our
international clients. We don’t give tax advice, but we do highlight areas that clients need to address
with their respective tax advisor.
Given the current market environment we are looking to find opportunities to manage the portfolio
through what appears to be a slowing down part of the business cycle. This means we are challenged to
discuss with our product distributors and wholesalers, what investment ideas they have that can
enhance the portfolio as the environment shifts. We also ask for ideas as to how to best invest when
the possibility of a recessionary environment is in the future. And how to transition.
Even though, most of these decisions fall on us as the advisor, it’s very useful to leverage our resources
by gaining the insights of firms with large research departments.
The best relationships we have with distributors and wholesalers are those where:
1. The focus of the relationship is on how to improve what we have already put together for
our clients.
2. The response rate of getting back to us is quick and to the point.
3. We get the opportunity to gain further knowledge of our business and the investment world
by accessing each firm’s macro resources.
4. Those we work with, get to know us and thereby bring to us ideas that are relevant to our
business.
Time is money and we need to use our resources as best we can.
Premia Global Advisors was founded in January 2016 by Miguel Sosa. Miguel was an International
Private Wealth Advisor under the Private Bank and Investment Group (PBIG) at Merrill Lynch for over 33
years. Along with his dealings with individuals and families, he was also an Institutional Consultant with
the Global Institutional Consulting Group. Where he was responsible for working with institutional
clients in the creation and development of investment policy statements, doing asset allocation analysis,
manager selection and working with clients on an ongoing basis to evaluate manager performance.
Premia was created for the purpose of working with international clients; individuals, families, and
institutions to provide them with access to an independent platform of ideas. Premia is supported by its
relationship with Dynasty Financial Partners out of New York. Dynasty provides Premia with Backoffice,
marketing, and due diligence support.