MutualFundWire.com: Starting Your Own Fund Family: Winning the Distribution Game
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Wednesday, May 4, 2011

Starting Your Own Fund Family: Winning the Distribution Game


Eight Simple Steps to Starting Your Own Mutual Family

Step Six: Distribution

See Other Steps
  • Step 1

  • Step 2

  • Step 3

  • Step 4

  • Step 5

  • Step 7

  • Step 8

    • Each mutual fund must have a distribution company responsible for the selling of its shares. In the case of many of the larger fund complexes the distribution company is a sister company to the investment advisor. For example, the American Funds investment advisor is Capital Research and the distribution firm is Capital Group.

    Over the past decade a number of custodian and transfer agency firms have created their own distribution arms. Some third-party distribution firms have also partnered with other providers to create turn-key fund shops. This development has greatly simplified the creation of new mutual fund families as part of what are known as series trusts.

    The MFWire has uncovered more than 250 distributors listed in regulatory filings as serving the 723 fund families currently in existence. The following are the 12 primary firms that act as third-party distributors for multiple mutual fund complexes:

  • Quasar Distributors, LLC
  • Foreside Distribution Services, L.P.
  • ALPS Distributors, Inc.
  • Northern Lights Distributors, LLC
  • SEI Investments Distribution Co.

  • Ultimus Fund Distributors, LLC
  • PFPC Distributors, Inc.
  • Unified Financial Securities, Inc.
  • Rafferty Capital Markets, LLC
  • Grand Distribution Services, LLC

  • Mutual Shareholder Services, LLC
  • UMB Distribution Services, LLC

    Editor's note: This article is part of The MFWire.com's eight-step primer for starting a mutual fund family.


    Printed from: MFWire.com/story.asp?s=36708

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