The other example I will give you, we recently brought on a firm that is a family office for over 20 wealthy families. When you have 20 families and all the multi-generations, the grandparents, children and grandkids, the family office ends up with a large number of accounts for all these generations as a result of estate and gift planning. We were approached by the family office who wanted to manage the money and all those accounts but do it in a more cost-effective way for them. Instead of having to open brokerage accounts for each of these children and grandkids on their brokerage platform or custodian platform, they are now using a mutual fund that they manage as a way to streamline their operations, but also provide high quality money-management to all of those family members, from the oldest to the youngest. “
Bill Hortz: “Any other applications or markets that having your own mutual funds can help?”
Bob Dorsey: “The retirement plans arena is another market potential. As you know, the mutual funds space is very public, very transparent. You have NAVs calculated each day; you can track performance through Morningstar or many other services, so when you’re in the funds space, you’re out there in the public eye. Investors can find you, see you, and monitor you literally 24-7. You can’t do that in the hedge fund or limited partnership space because they don’t have the same transparency and reporting requirements. So the mutual funds are the vehicle of choice for 401K plans, and many of our investment manager clients would love to be in 401K plans. We help them understand and plan for the unique challenges of developing new business in that space.
Bill Hortz: “Thank you Bob for sharing your perspective and world with us.”
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