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Throughout 2009, DST Systems, Inc. has celebrated 40 years of providing market-leading solutions to the mutual fund industry. In recognition of this milestone, Money Management Executive asked DST's senior leadership to identify ways investment management companies can maximize the value they deliver to their stakeholders by leveraging the strengths and resources of a service provider.
This special three-part series looks at how service providers like DST support investment management companies as they seek to manage expenses, improve efficiencies, mitigate risks and support distribution. The first two articles of the series are available at www.dstsystems.com. This third part focuses on how investment management companies can look to their service provider to increase their ability to sell products through their distribution channels.
Critical Mass
As financial products and the channels through which they are sold become more complex, investment management firms must be increasingly resourceful in identifying potential distribution partners and managing those relationships. These firms can look to their transfer agency service provider to deliver end-to-end data quality to enhance sales and marketing initiatives and drive operational efficiencies. They also can rely on their provider for intermediary self-servicing capabilities that help them manage expenses while delivering service to their distributors.
DST supports investment management companies' distribution initiatives by delivering solutions that meet the needs of both management companies and the intermediaries they do business with.
"DST's intermediary solutions have become industry-recognized standards relied upon by advisers and broker/dealer home offices" said Kyle Mallot, vice president, distribution support services. "Our investment management clients find that their affiliation with DST provides a level of intermediary access and solution adoption they can't get elsewhere. We can deliver both the technology expertise and the critical mass of intermediary participation to make solutions that are valuable for the product manufacturers as well as the intermediaries."
Data Quality Matters
A significant challenge that investment management companies face today is how to grow third-party distribution while maintaining high-quality trade, asset and intermediary information across transfer agent and distributor organizations. This challenge is made all the more difficult in light of limited resources, budget constraints and the accelerating pace of broker turnover, firm mergers, clearing relationships and omnibus trading.
"In this environment, it's very important to have data consistency and quality across your...