Ultimus: Advisor engagement is key

Some boutique firms are happy managing funds for the sole purpose of serving their existing client base. But others want to grow through third-party platforms, especially if they believe they have a good story to tell.

What should firms do to get started? What can they do to enhance their existing distribution strategy?

Ultimus Fund Solutions client conference recently had a discussion focusing on growth.

Panelists included Meridian IQ's Ryan Katz, consultant Keith Brown, Celera System's Beverly Dube and SunStar's Dan Sondhelm. The session was facilitated by Ultimus' distribution expert Kevin Guerette.

"Building mutual funds can be challenging. That's why we want to help our clients keep up with best practices about growth and distribution," says Guerette.

Brown adds, "Raising assets for any money manager today is as competitive as it has ever been. The firm needs a sound strategy, resources, commitment, plenty of patience and the understanding that they will try things that will not work as hoped. Though it's tough going, smaller or newer firms lacking brand recognition and long-term track records can still break out and find success."

Panelists agree advisor engagement is key. Asset managers need to determine how and through which medium(s) their target advisors want to engage them and uncover the information or solutions they desire. What kind of information does my ideal advisor (client) need to make investment decisions and how do they want to receive and consume it.
 

"It is impossible to make informed or strategic distribution decisions without having the business intelligence upon which to forge your channel, focus firm, and advisor outreach sales, marketing and communication strategies." says Dube. "Nor is it possible to track or manage wholesaler activities or communications and marketing campaigns effectively without a robust CRM system that offers a robust profile of the advisors you work with and don't yet."