Once qualified, BISYS will then actively market the funds to registered investment advisors (RIAs) who invest through mutual fund platforms sponsored by broker-dealers and other financial intermediaries, according to the announcement. As part of the program, BISYS, on behalf of the qualified funds, will negotiate pricing concessions from platform sponsors on the set-up fees charged to the funds.
BISYS will also actively support qualifying mutual funds by providing wholesaling services, the announcement said. Advisor Advantage wholesalers will identify fee-based advisors, determine their practice needs and seek to match a fund with an RIA’s portfolio goals. These distribution support services also include marketing collateral, Web-based activities, and networking event access.
BISYS said the funds, including smaller asset managers and new market entrants, will be selected according to criteria defined by Financial Research Corporation (FRC), a BISYS company. Factors include sustained performance, MPT metrics and style consistency. Qualified funds are then listed on the mutual fund platforms where they are available for purchase by the majority of the platforms’ RIAs.
BISYS has worked out a deal with RIA mutual fund platform provider Charles Schwab & Co., Inc. The arrangement will enable clients to access Schwab’s mutual fund platform at reduced start up costs and help BISYS to assist fund companies in sales reporting.