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Boost Performance Through Consolidation

Issue 14, 2010

Once thought of as a convenient, inexpensive model, direct-to-fund business is losing supporters throughout the industry. More and more, we are seeing investment professionals make the move from direct-to-fund business to brokerage. In addition to avoiding a “true cost” per transaction of up to $41, moving to a consolidated mutual fund platform provides many valuable benefits that solve the challenges presented by direct mutual fund business.*

Recent studies have revealed that consolidating mutual fund assets through a brokerage platform provide distinct advantages that can help you simplify your day-to-day activities, freeing up the time you need to continue to grow your business. While enabling you to manage your accounts with more control and efficiency, a centralized platform offers access to a wide variety of fund families allowing you to build tailored, targeted client portfolios. Consider some of the benefits of moving to a consolidated brokerage platform.

From a Relationship-Building Standpoint

  • There is a single client view with only one account and aggregated assets.
  • Service is centralized and controlled by you.
  • You gain a single platform with a wide range of funds and other products.
  • All client assets are included in breakpoint calculations.
  • Additionally, you will be able to offer clients consistent processes, methodologies and solutions.

From a Business Growth Standpoint

  • Consolidation provides you with a streamlined sales process, the opportunity to capture more assets, and more time for client service and business building.
  • Additionally, on the platform, you gain access to centralized, automated research, modeling and management tools.
  • Importantly, a consolidated platform facilitates advisory business.

From an Account Management Standpoint

  • Consolidated statements will simplify year-end tax reporting.
  • Commissions and 12b-1 payments are automated.
  • There is one account opening process.
  • There is a single password that provides access to information via a state-of-the-art online platform.
  • Additionally, consolidation offers same day trading and the ability to quickly move money between funds.

Together, these benefits can help you boost your performance and build deeper, more loyal client relationships. Contact your home office to learn more about making the move from direct-to-fund to brokerage.

*Source: The Reality of Direct Business: Check and Application is Not Free, Aite Group, December 2006.

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