Mutual fund giants start using terrorist identification tactic to target financial advisers

Law enforcement uses behavioral profiling to identify terrorists, and now mutual fund companies are starting to apply the methodology to financial advisers to target sales and marketing efforts more effectively.
OCT 09, 2009
Law enforcement uses behavioral profiling to identify terrorists, and now mutual fund companies are starting to apply the methodology to financial advisers to target sales and marketing efforts more effectively. They are looking at which advisers — regardless of their channel — focus on investors in the accumulation phase of investing and which focus on the distribution phase, according to industry watchers. Fund companies are studying which advisers use exchange-traded funds, which ones use separately managed accounts and which ones use alternative investments. “They are looking at how an adviser actually does business,” said Howard Schneider, president of the consulting firm Practical Perspectives. Some fund companies are even looking at more-personal information. “If someone is a successful rep, guess what? They will look like a successful consumer,” said Jack Wallace, solutions leader at Acxiom Corp., a marketing services consultant. Not all fund companies, however, are taking such a close look at the business and private lives of their adviser customers. Many are still wedded to focusing simply on whether an adviser falls into a particular silo — such as wirehouse, independent broker-dealer or independent registered investment adviser, Mr. Schneider said. But a growing number of fund companies are looking more closely at individual adviser practices. T. Rowe Price Group Inc. began such an effort about two years ago, said Bill Weker, its vice president of marketing/web strategy and development in third-party distribution. “We're trying to get under the hood of what's driving adviser behavior,” he said. The Vanguard Group Inc. is also looking past traditional channels to get a better feel for who an adviser really is, said Melissa Nassar, its head of sales. “It's a big deal for us,” she said. To read the full version of this story, please see the Oct. 12 issue of InvestmentNews

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.