Federated eyes regional B-Ds to boost distribution

Asset manager aims to double sales through smaller broker-dealers; 'coverage gap'
JUN 16, 2011
Federated Investors Inc. is on a hiring spree as it looks to step up its sales through regional broker-dealers. The asset manager will add 20 sales reps to its 45-person broker-dealer channel in the next 12 months, said Thomas E. Territ, president of Federated Securities Corp., the distribution arm of Federated Investors. The company aims to double sales through that channel in the next four years. Federated already has boosted its mutual fund sales across all of its channels in the past three years or so. Those sales jumped from $10 billion in gross mutual fund sales in 2007 to $22 billion in 2010. During that period of time, fund sales through the broker-dealer channels jumped from $6.4 billion to $12 billion, Mr. Territ said. But Federated's management believes it has great opportunities to expand the company's distribution, particularly through regional broker-dealers, Mr. Territ said. Under Mr. Territ, Federated has merged its independent and wirehouse sales groups, and focused them more on key accounts, he said. “Now I want to further develop and expand into regional firms where we have a good opportunity,” he said. Federated hopes to double sales in the broker-dealer channel over the next four years. The company has spent a lot of time on gaining a better understanding of the numbers of producers at the various regional broker-dealers, as well as understanding what kind of business these producers are doing and what products they are using, Mr. Territ said. “We see a coverage gap where we are feeling confident,” he said. Federated hopes to start hiring Aug. 1. As of March 31, Federated had $73.4 billion in assets in non-money-market mutual funds.

Latest News

Modera, Simplicity announce new acquisitions in busy day for industry M&A
Modera, Simplicity announce new acquisitions in busy day for industry M&A

Two RIAs expand their geographic footprints with deals in New York's Capital Region and coastal Alabama.

Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets
Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets

A 27-year Merrill veteran, Florida advisors, and a trio of New Jersey advisors just moved to new platforms.

LPL Research launches 17 model portfolios, hitting $100B in AUM
LPL Research launches 17 model portfolios, hitting $100B in AUM

Broker-dealer expands its model portfolio platform with modular building block strategies designed to give advisors greater customization at scale.

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income