Unlocking the Secrets of Platform Access

Bob Tebeleff, Simon Heslop, Bruce Bossio

At the recent SunStar Strategic Conference for Mutual Funds, we heard from two notable speakers regarding platform access: Bruce Bossio of Schwab Mutual Fund Marketplace and Simon Heslop of Commonwealth Financial Network.

How do funds get on platforms? For Schwab, there are no set criteria, Bossio explained. Naturally, if you are a new fund family there is a due diligence process. Once you get past that, Schwab  will work with you to discuss exactly how you want to offer your products on the Schwab platform. Typically, Bossio suggests you cast your net as wide as possible. You can choose to offer your fund on OneSource with no transaction fee (NTF), or with a transaction fee paid by the client. For the NTF option, the basis point fees compensate Schwab for additional visibility services. Schwab offers a brochure explicating this process.

It’s easy to get on Commonwealth. If you are on NFS, you are on Commonwealth. But Heslop explained that it’s difficult to then grab the attention of its advisors, who are the decision-makers behind portfolio management. Commonwealth does have an internal research team and a mutual fund recommended list, but advisors are the predominant access point. If you can find a way to influence the advisors, you may open some doors.


What opportunities do you provide to get in front of your advisors?
Bossio said that your best bet is to track down your relationship manager and ask for help navigating the programs. Schwab offers a marketing and events program that is distributed to OneSource partners, containing several things you can do to gain traction. He suggested sponsoring and participating in events and conferences, such as IMPACT, for its great relationship-building opportunities, mailings, and advertising in Schwab’s various publications.

For Commonwealth, you can call Heslop himself—or reach out to his mutual fund colleagues directly. He explained that the firms they work with generally have interesting white papers and offer something unique to make Commonwealth look smarter. He typically prefers small to mid-sized boutiques.  He reminded managers to be purposeful and patient when trying to contact Commonwealth.

What can fund firms do to get in front of clients?
Bossio recommended, aside from managing money well, you should build brand awareness via public relations, noting that appearing on financial television programs and magazines is a great strategy. He also suggested seeking outside distribution help and hiring an employee to manage relationships and follow up with advisors. “Know your key audience,” he said. “Talk to them about something their research team can’t easily find on its own.”

Heslop recommended that you search for information about the advisor as well as for the best way to contact them. Some tactics he suggested included sponsoring advisor events and amassing as much background information on them as possible prior to the call.

How important is it for funds to track advisors who are selling their funds?
Both presenters felt that  tracking is essential. Heslop said it’s harder to track this information from Commonwealth unless you are on an NTF platform, however. But he highlighted the importance of getting to know your advisors: “get inside their heads,” he said.

With Schwab, you can find some of this information through STAP (Schwab Trade Activity Portal), which offers some reporting. Bossio also recommended having an in-house person collect this data, focusing on areas that are most important to you.

Both Heslop and Bossio echoed other speakers during the conference: the best pitches don’t harp on performance—remember to explain what you can’t do as well as what you can and how you plan to handle varying market conditions.

By Katie Bird