Tremendous demand for fee-based programs triggered a reorganization within the wrap product division at First Union two weeks ago as well as an opening in senior management: a director of marketing position that oversees the newly-created teams, including the team focusing on FundSource, its mutual fund wrap program.

"The [uncertain] economy is the best thing that's ever happened to this business," said Dan McNamara, head of consulting services, citing clients' new viewpoints of risk tolerance as well as the decline in online trading as evidence. "Net new accounts [across First Union's six wrap programs] grew 57 percent last year ... and we project growth of 33 to 37 percent this year."

However, the jump in fee-based business makes the need to find talent more urgent; attracting human resources become more difficult in booming times. "There is a certain amount of free agency in the fee-based world," continued McNamara. "The trends are already so in our favor that attracting and keeping people [is far more significant]."

The slot became available after Dan Ludwin left more than a month ago to become a financial advisor. The position is still open, and will report to McNamara.

The growth encouraged executives to shift from a product neutral structure to three product teams, designed to raise internal awareness and drive asset capture. One team concentrates on FundSource; one team is identified with Masters, Network, and Compass Advisory, its separate account programs; and one team focuses on Private Investment Management (PIM) and Pilot Plus, its broker-driven programs.

The financial services complex, with headquarters in Charlotte, North Carolina, has approximately $19 billion in custodial assets across its six programs. 

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