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Asset Managers - June 22, 2021

Today’s Wholesaler — An Asset, Guide & Consultant to Advisors

As the asset management industry continues to evolve, so do advisors’ expectations of the mutual fund wholesaler. With an emphasis on their fiduciary responsibilities to their client, financial advisors seek to provide the most value possible in a growing competitive landscape. While there are intricacies depending on your function as either a central office internal or client-facing external, one thing is certain: financial advisors want more. 

They want a wholesaler that is not only knowledgeable about their own products, but also the economic and investment landscape as a whole. Your job is simple: be that expert.


Efficiently Monitor Your Product Library

Whether it’s recent performance numbers, risk factors, or the current expense ratio, successful distributors obsess over the nitty gritty details of their funds to build credibility. You could review and memorize that info every day, or refer back to that weekly email from the home office, but neither of those is a very efficient process.

As the demands of wholesalers continue to grow, every second of the day becomes more precious, and improving your efficiency while remaining an effective distributor is critical to success.

With YCharts, internals and externals can access a shared, online portal that’s always up-to-date with the latest metrics for your funds and those of competitors.

Say for instance that you are an external working for Bridgeway Funds. With the YCharts Dashboard, you can track data such as total returns, risk metrics like beta and upside/downside capture, or even the fund’s recent asset flows without having to scramble to find an email or sift through your team’s internal notes.

YCharts, Dashboard, Fund Level Flows, Upside/Downside Ratio, Beta, Sharpe Ratio, YTD Total Returns, BOTSX, BRAGX, BRBPX, BRLIX, BRSGX, BRSVX, BRUSX

By creating a shared Watchlist within YCharts, like the one below, externals can reference data views created by their internals and focus solely on relationship building. Not only that, but you have the ability to easily show this information as either a chart or a data table when meeting with an advisor.


Be the Expert in the Room by Delivering Dynamic Presentations

You’re meeting with an advisor, sharing all the strengths and benefits of your fund family. Then, you get asked a question on the spot that you don’t have an answer to. No one ever wants the “I’ll get back to you on that later” response. It takes away the momentum and in sales, we all know that time kills all deals.

Sound familiar?

When your credibility regarding product knowledge is at stake, you need to have the right tools and data that arm you with answers to advisors’ questions in real time. Plus, giving a knowledgeable answer on the spot could improve your chances of leaving with an order in hand.

Now, let’s say you showed an advisor the chart below, showing the performance of the various funds they utilize against the S&P 500. While a chart is already a powerful tool that tells a story, what if the advisor asks about Beta or risk-adjusted returns? With YCharts, you can build on this visual and tell an even more compelling story. 

Chart, American Century, Fidelity, Vanguard, Voya, Total Return, Small Cap, Growth, Large Cap

Download Visual | Modify in YCharts

With just a few clicks in YCharts, you can show the advisor that two funds they use, the American Century Small Cap Value R6 (ASVDX) and Fidelity® Small Cap Index (FSSNX), delivered the two lowest total returns, highest betas, indicating higher volatility and potential risk, and the lowest Sharpe ratios. Question: answered.

Chart, American Century, Fidelity, Vanguard, Voya, Total Return, Beta, Sharpe Ratio, Small Cap, Growth, Large Cap

Download Visual | Modify in YCharts

Instead of hitting a wall, you can build on your momentum and continue to grow your authority on not only the assets you’re trying to sell, but also as an overall investment consultant.


Track the Competition

The end goal is to win an advisor’s business, right? Timing can play a big part in achieving that goal, and the best time to position your fund is when its peers or competitors leave the door open.

With that in mind, it’s even more important to keep an eye on your competition to see if any of their products are 1) underperforming—so that you can displace them, or 2) outperforming your firm’s fund—prompting you to react accordingly.

Let’s say you’re a Wells Fargo distributor and wanted to show prospective advisors that your products have been outperforming the competition during the past year. YCharts’ Fund Screener lets you run a quick analysis of, say, all fixed-income funds with a small cap focus that ranked in the top 25 percent in terms of performance and drawdowns for the past year. As shown by the table below, Wells Fargo is the obvious top-performer of the group that met both of these criteria.

Fund Screener, Wells Fargo, BrandywineGLOBAL, Virtus Newfleet, Max Drawdown, 1 Year Total Returns

Download Visual | Modify in YCharts

While the Fund Screener can be an effective way to highlight your funds, it can also be a valuable tool to educate your clients. Successful wholesalers go above and beyond to inform their advisors about the current market conditions. With the Fund Screener, you’re able to perform a similar analysis by filtering for different fund categories and financial metrics that meet your advisor’s risk appetite, helping them make decisions rooted in data.


Advisors Want Proactive Consultants to Address Their Future Needs

General monthly check-ins with your clients and prospects are a good best practice. Updates on your product’s performance in light of market conditions is even better. But what advisors really want is a constant flow of knowledge. Successful wholesalers serve as a guide and resource hub of knowledge.

YCharts’ monthly Fund & Category Flows Reports are an invaluable resource for distribution teams. It provides the latest and greatest data for recent fund flows, categories with the most inflows and outflows, and a holistic view of where advisors and investors are placing their assets.

Subscribe to the Monthly Fund Flows Report

Not only is this report beneficial for you, but it’s a great way to connect with your advisors. Combine insights from the Fund Flow Reports with your knowledge of an advisor’s asset matrix and provide tailored recommendations rooted in prevailing market trends, thereby positioning yourself as the proactive wholesaler.

Additionally, YCharts has the ability to create customized securities alerts and email reports based on your needs providing you timely updates on the market and economy at large.


Becoming Today’s Wholesaler

Whether it’s being knowledgeable about your product offerings, the competition, or the market at large, financial advisors want to work with an expert. The more you emphasize your role as a knowledgeable resource, the more advisors will begin to rely on you and integrate you into their process. If you can prioritize your role as an educator and consultant before your role as a salesperson, you may prove to be invaluable and stand out from the competition.


Connect with YCharts

To learn more, schedule time to meet with an asset management specialist, call us at (773) 231-5986, or email hello@ycharts.com.

Want to add YCharts to your technology stack? Sign up for a 7-Day Free Trial to see YCharts for yourself.



©2021 YCharts, Inc. All Rights Reserved. YCharts, Inc. (“YCharts”) is not registered with the U.S. Securities and Exchange Commission (or with the securities regulatory authority or body of any state or any other jurisdiction) as an investment adviser, broker-dealer or in any other capacity, and does not purport to provide investment advice or make investment recommendations. This report has been generated through application of the analytical tools and data provided through ycharts.com and is intended solely to assist you or your investment or other adviser(s) in conducting investment research. You should not construe this report as an offer to buy or sell, as a solicitation of an offer to buy or sell, or as a recommendation to buy, sell, hold or trade, any security or other financial instrument. For further information regarding your use of this report, please go to: ycharts.com/about/disclosure


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