America Online is exploring ways to get into the fund distribution business, according to one AOL business developer at the recent ICI General Membership Meeting.

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Although the executive declined to elaborate when contacted after the conference and AOL would not return calls, she said at the conference, while passing out business cards to the exhibitors and attendees, that AOL was looking for fund companies to promote their products through AOL's finance section. In addition, the company was currently "coming up with a strategy" to distribute investment products through the AOL Web site.

"We've always collectively said that we're not sure where the next level of competition will come from," said Geoff Bobroff, president of Bobroff Consulting. "What we could be doing in the near future is going to one portal and visiting lots of other sites through that portal."

"It would not surprise me to wake up some day and find that AOL had bought Financial Engines or mPower or another advice provider," said Bobroff. AOL currently offers the TeamVest 401(k) advice product free through an alliance with Quicken as well as advice from Financial Engines in its finance section.

Bobroff added that it would not surprise him to see that Microsoft was also looking into investment product distribution through its MSN or Money software products. 

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