The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:BlackRock Rewards Buy-and-Hold Sales Not Rated 2.0 Email Routing List Email & Route  Print Print
Tuesday, June 24, 2014

BlackRock Rewards Buy-and-Hold Sales

News summary by MFWire's editors

It's a common headache for fund firms. A wholesaler sells some funds to an advisor, gets a commission for the sale, and soon after the advisor redeems the funds -- depriving the firm of the management fees.

In a big shift from the old sales paradigm, BlackRock has shaken up its sales compensation packages to encourage flows to buy-and-hold clients, retail head Frank Porcelli declared during the Reuters Global Wealth Management Summit according to the newswire.

Porcelli said that BlackRock, since the beginning of the year, now pays commissions based on "net" sales, instead of the old practice of paying a percentage of gross flows.

The shift is meant to move flows away from high-volume fund traders, for example advisors at brokerage firms.

According to the Reuters article, firms have been hesitant to make the change for fear of losing sales talent.

However, firms have become more willing to shake up their sales strategies recently. For example, firms are embracing big data supplied from firms such as Broadridge, Access Data and Albridge. They are using this data to focus sales on high opportunity clients, as well as more accurately gauge wholesaler flows to better calibrate commissions. 

Edited by: Tommy Fernandez

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use