Download - Ifwc Ria Presentation 2010
V4033109Ó FundQuest Incorporated 2010
Institute for Family Wealth Counseling
RIA Advisory Product and Service Offering
V4033109Ó FundQuest Incorporated 2010
A Strategic Partnership RIA Advisory Product and Service Offering
Firm Overview
Platform Overview
Product and Service Offerings
3For Investment Professional use only. Not for distribution to the public.
Click to edit Master title style
Founded in 1993
$40 billion in assets under management & administration in combined US and European operations*
Subsidiary of BNP Paribas, one of world’s largest and most stable financial services firms
Registered Investment Advisor (RIA)
A global leader in managed account solutions
*FundQuest's services are offered in the US through FundQuest Incorporated, a registered investment advisor
FundQuest Snapshot
4For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleGlobal Presence
A global organization with investment teams in Boston, Paris, London
210 people, including 48
investment professionals in combined US and European operations
ParisBoston
London
5For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleStrategic Outsourcing for Advisory Firms
BanksInsurance
CompaniesBroker-Dealers
Trust /Wealth-Management
Over 180 Financial Advisory Firm Clients
RIAs
Over 80 RIA firms with $25 million to $3 billion in AUM
12 of top 20 independent broker dealer networks
3 of the top 10 bank broker-dealers
28 of the top 100 credit unions
The largest third party bank investment marketing firm
10 of top 50 life insurance broker-dealers
Major regional bank trust and family office divisions
V4033109Ó FundQuest Incorporated 2010
A Strategic Partnership RIA Advisory Product and Service Offering
Firm Overview
Platform Overview
Product and Service Offerings
7For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleSample RIA Business Model
Asset Gathering
InvestmentAdvice
Client Servicing
InvestmentManagement
Trading / Rebalancing
Portfolio Accounting
Client Reporting
Compliance
Custodian #1
Custodian #2
TPA#1
Etc.
Investment Advisory Professionals
Investment Manufacturing and Support Professionals
3rd Party Custodians and other Book of Record Providers
8For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleFundQuest Managed Account Platform
Proposal Tools
Advisor Servicing
Portal
Practice Management
Manager Due
Diligence
Operational Support Services
Portfolio Accounting
and Reporting
Client Reporting
Investment Product
Custodian #1
Custodian #2
TPA#1
Etc.
Investment advisory professional web portal coupled with field and telephone based sales and service support professionals
Comprehensive investment management and support services offered on a bundled or à la carte basis
Seamless integration with major custodians and record keepers
9For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleFlexible FundQuest Partnership Model
Asset Gathering
InvestmentAdvice
Client Servicing
InvestmentManagement
Trading / Rebalancing
Portfolio Accounting
Client Reporting
Compliance
Custodian #1
Custodian #2
TPA#1
Etc.
FQ
FQ
E X A M P L E
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
10For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleCustody and Clearing Flexibility
Proposal Tools
Advisor Servicing
Portal
Practice Management
Manager Due
Diligence
Operational Support Services
Portfolio Accounting
and Reporting
Client Reporting
Investment Product
Custodian #1
Custodian #2
TPA#1
Etc.
Clearing and
Custody Providers
FundQuest has partnerships with the major clearing and custody firms:
Fidelity (IWS and NFS) Pershing (PAS and BDS) Schwab Institutional TD Ameritrade J.P. Morgan Ridge Clearing NSCC VA / VUL interfaces DST FanMail interfaces
V4033109Ó FundQuest Incorporated 2010
A Strategic Partnership RIA Advisory Product and Service Offering
Firm Overview
Platform Overview
Product and Service Offerings
12For Investment Professional use only. Not for distribution to the public.
Click to edit Master title style
Advisor portal allows web access to investment support and client servicing tools:
Website branded to the RIA with ability to post customized news bullets and firm related investment and product documents
Investment center that provides product detail and research tools
Investment proposal tools
Account look up and report center
Forms and paperwork center
Advisor Servicing Portal
Advisor Servicing
Portal
13For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleWelcome Page
Advisor Servicing
Portal
1/8/2010 Recent Market Outlook Available <here>
Hunter GroupH
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.
Clicking on the links in the top of this page will bring to the appropriate section of the website.
If you have any questions, please contact FundQuest support at 1-800-234-6522 or [email protected]
HOME CLIENT PROFILING INVESTMENT CENTER FORMS CENTER ACCOUNT LOOKUP
14For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleInvestment Center
Advisor Servicing
Portal
Due Diligence Analysis
Fact Sheets
Commentaries and Product Detail
15For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleAccount Viewing
Advisor Servicing
Portal
The account lookup feature allows the advisor to query accounts in a variety of ways:
Household drilldown. Information is grouped by household with ability to drill into the account level
Account View. This view shows current actuals versus target allocations and flags exceptions
Performance View. Presents performance as of previous business day
Account Detail. Transaction history, account fee schedules, and prompts to create interim statements are also available
16For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleOn Demand Reporting
Advisor Servicing
Portal
Advisors may generate portfolio accounting style reports for one or more household relationships or one or more accounts. Consolidated or per account views User defined output formats including PDF and MS excel Point to point performance reporting and “as of” position
statements
17For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleOn Demand Reporting Samples
Advisor Servicing
Portal
18For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleProposal Tools
Proposal Tools
Client profiling application provides suitability questionnaire and customizable client investment proposal:
Suitability questionnaire provided by FundQuest or customized to the RIA
Existing portfolio diagnostic
Investment recommendation
Portfolio analytics – recommended versus benchmark
Mutual fund, ETF, and manager strategy fact sheets
19For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleClient Profiling
Proposal Tools
Client Questionnaire Portfolio Construction Proposal Creation
20For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleClient Proposal Options
Proposal Tools
Current and Recommended Portfolio Presentation
Fact Sheets
Portfolio Analytics
21For Investment Professional use only. Not for distribution to the public.
Click to edit Master title stylePractice Management
Practice Management
FundQuest sales and service competency: Toll free service desk for inquiries and assistance preparing
proposals as needed Field force available for on site training and support Conference calls with FundQuest Investment Management and
outside speakers on a quarterly basis Marketing collateral design assistance
22For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleInvestment Product – RIA Manufactured
An RIA may offer their own product through the FundQuest platform:
FundQuest’s internet based manager portal allows for the submission of product models and manager strategy models
Flexible model management including rebalancing instructions and alternate security treatment
Allows for full outsource of trading responsibilities and overhead
Investment Product
23For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleInvestment Product – ActivePassive® Portfolios
Investment Product
Access to FundQuest ActivePassive® Portfolios, an innovative product that efficiently allows the investor to combine active and passive investment strategies:
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.
PASSIVE MANAGEMENT BENEFITS• Generally lower management fees• No decision making required by the manager• Better potential for capturing full performanceof the index: up and down
PASSIVE MANAGEMENT CHALLENGES• Investors cannot expect to exceed index returns• No ability to provide downside protection
ACTIVE MANAGEMENT BENEFITS• Expert analysis by experienced investmentprofessionals• Upside potential: the possibility of achievingreturns higher than those of the index• Downside protection: managers may actdefensively during market downturns and periodsof market uncertainty
ACTIVE MANAGEMENT CHALLENGES• Higher fees and operating expenses• Poor security selection or sector allocationdecisions may impact returns
24For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleInvestment Product – UMA
UMA offering allows either a model based approach or for those investment advisors who want to do hands-on portfolio management:
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
Advanced overlay process. Sophisticated overlay portfolio management processes with drift tolerances calibrated to sleeve size
Flexible restriction handling. Industry sectors, individual securities, KLD research categories, and SIC codes may all be used as screening criteria
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
Lower manager minimums and fees. As compared to traditional SMA products
Investment Product
25For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleInvestment Product – UMA
Investment Product
Typical UMA Concerns The FundQuest Difference
Only model portfolios are available
Advisor may be given the discretion to construct a portfolio to meet the clients specific needs
UMA cannot accommodate a legacy position
A legacy position may be set up as an individual security
Key managers are not willing to participate in many UMA programs
FundQuest’s overlay process provides trading flexibility that allows participation in manager rotations, trading techniques dictated by the manager and manager step out trading
Fixed income manager strategies are not available
Fixed income manager strategies are available at minimums starting at $100,000
Fees are too high Manager strategy fees discounted as compared to traditional SMA account solutions
26For Investment Professional use only. Not for distribution to the public.
Click to edit Master title stylePortfolio Accounting and Reporting
Proprietary portfolio accounting system consolidates all accounts across RIAs custodians:
Daily downloads with major custodians supported by daily reconciliation and performance measurement calculations
Firm level management reporting available
Advisor level on demand reports available through the advisor website
Ability to link multiple accounts at a household relationship level for viewing and reporting
Ability to maintain cost basis at the lot level
Portfolio Accounting
and Reporting
27For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleOperational Support Services
FundQuest Advisor Services and Operations teams dedicated to ongoing advisor support:
Sophisticated overlay technology allows FundQuest to provide trading and rebalancing services for modeled products
Flexible fee engine supports diverse sets of fee schedules with automated interfaces to major custodians for fee deductions
Support for periodic and ad hoc cash deposits and withdrawals and dollar cost averaging requests
Operational support models tailored to the needs of the RIA
Operational Support Services
28For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleClient Reporting – Quarterly Performance Report
Client Reporting
29For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleClient Reporting – Account Snapshot Report
Client Reporting
30For Investment Professional use only. Not for distribution to the public.
Click to edit Master title styleClient Reporting – Web Access
Client Reporting
A/C#
ColumnAccount Name Columns
Client web access available
Quarterly performance reports may be posted