Cincinnati-based Countrywide Investments, Inc. is planning a bulked-up sales and marketing program for its affiliated broker/dealers. The company will increase sales charges, increase sales support, and focus on portfolio manager accessibility. The initiative will be launched on or around August 1, 1999.

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"The traditional wholesaling approach just doesn't work as well today as it did in the past," Bill Hortz, executive vice president and director of sales told the MFWire.com. "Our partners are looking for someone to help them build their businesses, and we're doing that through the new initiatives."

"Yes, we are one of the small guys, but innovation comes from the smaller guys," added Hortz, "I know for a fact that some of (the tools) we offer aren't offered by some of the bigger funds."

One of the advantages that Hortz sees in being a smaller fund family is the accessibility of the portfolio managers and the sales and marketing staff. He says his staff will be growing in order to support the program which will include a business development newsletter, NASD approved seminars, and specialized sales training programs.

The $1 billion, 16 fund family will also look for other funds either through acquisition or by bringing in new sub-advisors in the near future.

Probably the most important component for the strategic partners involved is the restructuring of sales charges for the Countrywide Funds. The sales charge for A shares will increase from 4% to 5.75% in order to compete favorably with industry leaders.

The C shares will add a 1.25% sales charge, providing a 2% up-front payout to brokers as well as a 1% annual trail fee after the 13th month. Hortz said that brokers felt the A shares would now be where they should be, but they were most enthusiastic about the C share increase, since that was where the channel saw the most opportunity for growth.

An additional tool offered within the program will be an advisor-only password protected website, offering the latest research, analysis, marketing materials and conference call rebroadcasts.

When asked about the accessibility of portfolio holdings, Hortz stressed that Countrywide made information available on a timely basis, adding that some partners receive the latest holdings within ten days after the end of each month.

"Countrywide understands that the investment industry is changing," said Hortz. "We have a clear vision of these changes, and we are moving forward with our strategic partners. Whatever our strategic partners need to build their business -- no-load, load, C class shares, WRAP -- Countrywide offers. We also have joined a number of load waived supermarkets."

"Our series of unique tools and services, in conjunction with our quality fund and separate account offerings and more competitive pricing, will enable more of our strategic partners to take advantage of all Countrywide has to offer," concluded Hortz.

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