Many will have to go to extraordinary lengths and expenses, compared to what they're used to, in order to insure that their fund-family presence retains vitality. Fund companies already are cutting deals that offer Web site technology in exchange for exposure. In truth, brokerage firms are positioned to call many of the shots going forward in terms of fees and services. Value-added services from fund firms that go well beyond traditional sales stories, brochures, and golf paraphernalia will be required. Of course, some facts about wholesaling aren't going to change.
Good relationships are basic.
However, many in the business believe that making a brokered sale today is far more of a sophisticated process than it was just a few years ago. Product diversity in conjunction with bundled financial services demands that today's brokers be more like advisors. They now have to sell asset allocation and financial planning to customers, not just investment products. It is a more complicated selling environment that requires better-educated intermediaries. FRC explored the education issue with industry experts and gained some surprising insights into the situation which could translate into selling opportunities for fund firms.