Northern Lights Distributors, which already offers a slew of distribution and marketing services to mutual fund companies, is considering building out an internal sales desk to support clients' external sales professionals.

The firm has 15 people covering 300 funds at present and usually takes on 50-60 new relationships per year. Northern Lights' Omaha-based executives recently dropped by MFWire's New York office to go over their hands-on approach to mutual fund marketing, sales and distribution.

Northern Lights, which is part of NorthStar Financial, can also offer managers a host of other services through NorthStar's other affiliates. The Gemini Companies can help mutual funds with set-up and back office, while their Blu Giant affiliate can assist with a range of marketing and advertising services. North Star's Omaha offices are basically a one-stop shop for a fund manager's business needs: including set-up, marketing, web strategy, compliance and distribution, explained Brian Nielsen, Northern Lights' CEO.

He and Bill Wostoupal, Northern Lights' president, also said that they will usually take on any mutual fund, as negotiations with managers that want their services rarely fall through.

Nielsen added that the firm usually works with smaller managers, in the $25 to $500 million range, though it will sometimes take on a few that are already over $1 billion. Executives at the firm will talk to managers to see which retail channels they want to pursue, and where they've made a dent in order to come up with a more targeted distribution strategy. They will then introduce the managers to broker dealers, registered investment advisors, wirehouse brokers, custodial bank platforms and other investors.

Northern Lights also hosts several events throughout the year where it introduces mutual fund executives to prospective clients. These can take the form of small dinners, "speed dating sessions" or large conferences. Executives at Northern Lights also frequently go to large conferences, hosted by other providers, on their clients' behalves.

As part of these and other services, Northern Lights' invests heavily in travel expenses for its personnel.

"If a fund manager is passing through Dallas and calls us to ask who we know in Dallas, one of our guys can just show up there and walk them into doors or ride shotgun with them," Wostoupal said. He realizes this is a heavy cost on the business, but he think it's worth it. "The clients love it," he said.

 

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