At the same time, fund companies are developing special Web sites for brokers. Despite the growth of the independent financial advisor market, most financial intermediaries still work for large brokerage firms that carefully monitor all forms of sales communications that reach their desks. The problem for mutual fund companies is compounded by the fact that these firms restrict the content of their Internet networks to enforce compliance guidelines and in some cases promote proprietary fund sales. Officials at Fidelity Investments, which maintains agreements to download its own materials to Web masters at a large network of financial service companies through its AdvisorXchange system, reportedly have talked to fund companies about transmitting their materials for a fee. Web operators at leading brokerage firms would sort out the content that complies with firm guidelines and pass it on to the brokers.
Developments are also underway from the fund company's side of things.
Franklin Templeton Investments is negotiating to bring its Internet content to the desktop computers of brokers at a single wirehouse. A lot of the wirehouses can be restricted from coming to our Web site. Something that we'd like to do is build content here at Franklin Templeton and bring it to their Web site. Franklin Templeton is only beginning to talk with Merrill Lynch about providing video commentaries from its fund managers. Down the road, Dodge envisions providing its own micro-Web sites for each of the wirehouses, also known as Extranets.