BISYS, a leading provider of outsourcing solutions for the financial services sector, today unveiled its new AdvisorAdvantage suite of services.
AdvisorAdvantage — the latest enhancement to BISYS' distribution offerings — will rigorously screen for top-performing mutual fund candidates among the clients of BISYS Fund Services. 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. As part of this program, BISYS, on behalf of the qualified funds, will also obtain favorable pricing concessions from platform sponsors on the set up fees they charge funds on the platform.
"This is a rare opportunity for investment firms of quality products to reach registered investment advisors through fund supermarkets in a cost-effective manner," said Fred Naddaff, president, BISYS Fund Services. "AdvisorAdvantage is powerful distribution resource that we're proud to offer our clients."
The BISYS initiative places a focused distribution effort behind a selection of superior asset managers previously not widely available to fee-based advisors. These funds, including smaller asset managers and new market entrants, have been selected according to stringent criteria defined by Financial Research Corporation (FRC), a BISYS company. Factors include sustained performance, MPT metrics and style consistency. The screening is intended to help ensure that funds are poised for success through the identification of top-tier strategies in key equity styles and capitalizations. Qualified funds are then listed on the mutual fund platforms, at a favorable start-up cost, where they are available for purchase by the majority of the platforms' RIAs.
BISYS will actively support qualifying mutual funds by providing wholesaling and marketing services. AdvisorAdvantage 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 has secured an agreement with the leading RIA mutual fund platform provider Charles Schwab & Co., Inc. The arrangement will enable AdvisorAdvantage clients to access Schwab's mutual fund platform at reduced start up costs and enable BISYS to assist fund companies in sales reporting.
"The potential of third-party distribution is overshadowed by the uncertainty of entering a new channel and the associated costs," said Mr. Naddaff.
"AdvisorAdvantage offers leverage and experience to clients who would otherwise be required to draw on their own internal resources in approaching this essential and lucrative distribution channel."