Ifwc Ria Presentation 2010


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Ifwc Ria Presentation 2010

  1. 1. Institute for Family Wealth CounselingRIA Advisory Product and Service Offering <br />
  2. 2. A Strategic PartnershipRIA Advisory Product and Service Offering <br /><ul><li>Firm Overview
  3. 3. Platform Overview
  4. 4. Product and Service Offerings</li></li></ul><li>FundQuest Snapshot<br /><ul><li>Founded in 1993
  5. 5. $40 billion in assets under management & administration in combined US and European operations*
  6. 6. Subsidiary of BNP Paribas, one of world’s largest and most stable financial services firms
  7. 7. Registered Investment Advisor (RIA)
  8. 8. A global leader in managed account solutions</li></ul>*FundQuest's services are offered in the US through FundQuest Incorporated, a registered investment advisor<br />
  9. 9. Global Presence<br /><ul><li>A global organization with investment teams in Boston, Paris, London
  10. 10. 210 people, including 48 investment professionals in combined US and European operations</li></ul>London<br />Boston<br />Paris<br />
  11. 11. Strategic Outsourcing for Advisory Firms<br />Insurance Companies<br />Trust /Wealth-Management <br />Broker-Dealers<br />RIAs<br />Banks<br />Over 180 Financial Advisory Firm Clients<br /><ul><li>10 of top 50 life insurance broker-dealers
  12. 12. 28 of the top 100 credit unions
  13. 13. The largest third party bank investment marketing firm
  14. 14. 12 of top 20 independent broker dealer networks
  15. 15. 3 of the top 10 bank broker-dealers
  16. 16. Major regional bank trust and family office divisions
  17. 17. Over 80 RIA firms with $25 million to $3 billion in AUM</li></li></ul><li>A Strategic PartnershipRIA Advisory Product and Service Offering <br /><ul><li>Firm Overview
  18. 18. Platform Overview
  19. 19. Product and Service Offerings</li></li></ul><li>Sample RIA Business Model<br /><ul><li>Investment Advisory Professionals
  20. 20. Investment Manufacturing and Support Professionals
  21. 21. 3rd Party Custodians and other Book of Record Providers</li></ul>Asset <br />Gathering<br />Investment<br />Advice<br />Client Servicing<br />Investment<br />Management<br />Trading / Rebalancing<br />Client Reporting<br />Portfolio Accounting<br />Compliance<br />Custodian <br />#1<br />Custodian <br />#2<br />TPA<br />#1<br />Etc.<br />
  22. 22. FundQuest Managed Account Platform<br /><ul><li>Investment advisory professional web portal coupled with field and telephone based sales and service support professionals
  23. 23. Comprehensive investment management and support services offered on a bundled or à la carte basis
  24. 24. Seamless integration with major custodians and record keepers</li></ul>Proposal Tools<br />Advisor Servicing Portal<br />Practice Management<br />Investment Product<br />Manager Due Diligence<br />Portfolio Accounting and Reporting<br />Operational Support Services<br />Client Reporting<br />Custodian <br />#1<br />Custodian <br />#2<br />TPA<br />#1<br />Etc.<br />
  25. 25. Flexible FundQuest Partnership Model<br />Asset <br />Gathering<br />Investment<br />Advice<br />A flexible solutions driven approach allows RIA to take advantage of a custom tailored set of tools and services to supplement the RIAs core competencies<br />FQ<br />Client Servicing<br />E X A M P L E<br />Investment<br />Management<br />Trading / Rebalancing<br />FQ<br />Client Reporting<br />Portfolio Accounting<br />Compliance<br />Custodian <br />#1<br />Custodian <br />#2<br />TPA<br />#1<br />Etc.<br />
  26. 26. Custody and Clearing Flexibility<br />FundQuest has partnerships with the major clearing and custody firms:<br /><ul><li>Fidelity (IWS and NFS)
  27. 27. Pershing (PAS and BDS)
  28. 28. Schwab Institutional
  29. 29. TD Ameritrade
  30. 30. J.P. Morgan
  31. 31. Ridge Clearing
  32. 32. NSCC VA / VUL interfaces
  33. 33. DST FanMail interfaces</li></ul>Proposal Tools<br />Advisor Servicing Portal<br />Practice Management<br />Investment Product<br />Manager Due Diligence<br />Clearing <br />and<br />Custody Providers<br />Portfolio Accounting and Reporting<br />Operational Support Services<br />Client Reporting<br />Custodian <br />#1<br />Custodian <br />#2<br />TPA<br />#1<br />Etc.<br />
  34. 34. A Strategic PartnershipRIA Advisory Product and Service Offering <br /><ul><li>Firm Overview
  35. 35. Platform Overview
  36. 36. Product and Service Offerings</li></li></ul><li>Advisor Servicing Portal<br />Advisor portal allows web access to investment support and client servicing tools:<br /><ul><li>Website branded to the RIA with ability to post customized news bullets and firm related investment and product documents
  37. 37. Investment center that provides product detail and research tools
  38. 38. Investment proposal tools
  39. 39. Account look up and report center
  40. 40. Forms and paperwork center</li></ul>Advisor Servicing Portal<br />
  41. 41. Welcome Page<br />Advisor Servicing Portal<br />Hunter Group<br />H<br />HOME CLIENT PROFILING INVESTMENT CENTER FORMS CENTER ACCOUNT LOOKUP<br />Welcome to the Hunter Group Financial Advisors Portfolio Management Program, an advisor-driven, managed account program offered through FundQuest. FundQuest is a leading independent investment management firm that designs, develops and operates managed account investment programs that enable financial institutions to offer managed account products.<br />Clicking on the links in the top of this page will bring to the appropriate section of the website.<br />If you have any questions, please contact FundQuest support at 1-800-234-6522 or AdvisorServices@fundquest.com<br />1/8/2010 Recent Market Outlook Available <here><br />
  42. 42. Investment Center<br /><ul><li>Fact Sheets</li></ul>Advisor Servicing Portal<br /><ul><li>Commentaries and Product Detail
  43. 43. Due Diligence Analysis</li></li></ul><li>Account Viewing<br />The account lookup feature allows the advisor to query accounts in a variety of ways:<br /><ul><li>Household drilldown. Information is grouped by household with ability to drill into the account level
  44. 44. Account View. This view shows current actuals versus target allocations and flags exceptions
  45. 45. Performance View. Presents performance as of previous business day
  46. 46. Account Detail. Transaction history, account fee schedules, and prompts to create interim statements are also available</li></ul>Advisor Servicing Portal<br />
  47. 47. On Demand Reporting<br />Advisors may generate portfolio accounting style reports for one or more household relationships or one or more accounts.<br /><ul><li>Consolidated or per account views
  48. 48. User defined output formats including PDF and MS excel
  49. 49. Point to point performance reporting and “as of” position statements</li></ul>Advisor Servicing Portal<br />
  50. 50. On Demand Reporting Samples<br />Advisor Servicing Portal<br />
  51. 51. Proposal Tools<br />Client profiling application provides suitability questionnaire and customizable client investment proposal:<br /><ul><li>Suitability questionnaire provided by FundQuest or customized to the RIA
  52. 52. Existing portfolio diagnostic
  53. 53. Investment recommendation
  54. 54. Portfolio analytics – recommended versus benchmark
  55. 55. Mutual fund, ETF, and manager strategy fact sheets</li></ul>Proposal Tools<br />
  56. 56. Client Profiling<br />Proposal Tools<br /> Client Questionnaire Portfolio Construction Proposal Creation<br />
  57. 57. Client Proposal Options<br /><ul><li>Fact Sheets</li></ul>Proposal Tools<br /><ul><li>Portfolio Analytics
  58. 58. Current and Recommended Portfolio Presentation</li></li></ul><li>Practice Management<br />FundQuest sales and service competency:<br /><ul><li>Toll free service desk for inquiries and assistance preparing proposals as needed
  59. 59. Field force available for on site training and support
  60. 60. Conference calls with FundQuest Investment Management and outside speakers on a quarterly basis
  61. 61. Marketing collateral design assistance</li></ul>Practice Management<br />
  62. 62. Investment Product – RIA Manufactured<br />An RIA may offer their own product through the FundQuest platform:<br /><ul><li>FundQuest’s internet based manager portal allows for the submission of product models and manager strategy models
  63. 63. Flexible model management including rebalancing instructions and alternate security treatment
  64. 64. Allows for full outsource of trading responsibilities and overhead</li></ul>Investment Product<br />
  65. 65. Investment Product – ActivePassive® Portfolios<br />Access to FundQuest ActivePassive®Portfolios, an innovative product that efficiently allows the investor to combine active and passive investment strategies:<br /><ul><li>Each fund has established active to passive ratio guidelines that are the minimum and maximum boundaries for the fund’s allocation to the actively and passively managed components. </li></ul>PASSIVE MANAGEMENT BENEFITS<br />• Generally lower management fees<br />• No decision making required by the manager<br />• Better potential for capturing full performance<br />of the index: up and down<br />PASSIVE MANAGEMENT CHALLENGES<br />• Investors cannot expect to exceed index returns<br />• No ability to provide downside protection<br />ACTIVE MANAGEMENT BENEFITS<br />• Expert analysis by experienced investment<br />professionals<br />• Upside potential: the possibility of achieving<br />returns higher than those of the index<br />• Downside protection: managers may act<br />defensively during market downturns and periods<br />of market uncertainty<br />ACTIVE MANAGEMENT CHALLENGES<br />• Higher fees and operating expenses<br />• Poor security selection or sector allocation<br />decisions may impact returns<br />Investment Product<br />
  66. 66. Investment Product – UMA<br />UMA offering allows either a model based approach or for those investment advisors who want to do hands-on portfolio management:<br /><ul><li>Open architecture product depth and breadth. Ability to construct portfolios using a wide universe of separate account manager strategies, ETFs, mutual funds, and legacy stock positions within a single account
  67. 67. Advanced overlay process. Sophisticated overlay portfolio management processes with drift tolerances calibrated to sleeve size
  68. 68. Flexible restriction handling. Industry sectors, individual securities, KLD research categories, and SIC codes may all be used as screening criteria
  69. 69. Enhanced tax management capabilities. Systematic, risk-managed tax harvesting processes support identification of opportunities throughout the year. Sensibly calibrated optimization is aimed at minimizing small trades
  70. 70. Lower manager minimums and fees. As compared to traditional SMA products</li></ul>Investment Product<br />
  71. 71. Investment Product – UMA<br />Investment Product<br />
  72. 72. Portfolio Accounting and Reporting<br />Proprietary portfolio accounting system consolidates all accounts across RIAs custodians:<br /><ul><li>Daily downloads with major custodians supported by daily reconciliation and performance measurement calculations
  73. 73. Firm level management reporting available
  74. 74. Advisor level on demand reports available through the advisor website
  75. 75. Ability to link multiple accounts at a household relationship level for viewing and reporting
  76. 76. Ability to maintain cost basis at the lot level</li></ul>Portfolio Accounting and Reporting<br />
  77. 77. Operational Support Services<br />FundQuest Advisor Services and Operations teams dedicated to ongoing advisor support:<br /><ul><li>Sophisticated overlay technology allows FundQuest to provide trading and rebalancing services for modeled products
  78. 78. Flexible fee engine supports diverse sets of fee schedules with automated interfaces to major custodians for fee deductions
  79. 79. Support for periodic and ad hoc cash deposits and withdrawals and dollar cost averaging requests
  80. 80. Operational support models tailored to the needs of the RIA </li></ul>Operational Support Services<br />
  81. 81. Client Reporting – Quarterly Performance Report<br />Client Reporting<br />
  82. 82. Client Reporting – Account Snapshot Report<br />Client Reporting<br />
  83. 83. Client Reporting – Web Access<br />A/C<br /># Column<br />Account Name Columns<br /><ul><li>Client web access available
  84. 84. Quarterly performance reports may be posted </li></ul>Client Reporting<br />