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

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

Rating:After 29 Years and $222MM, a Midwestern Mutual Fund Shop Exits Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 09, 2016

After 29 Years and $222MM, a Midwestern Mutual Fund Shop Exits

Reported by Neil Anderson, Managing Editor

After 29 years in the mutual fund business, a Midwestern RIA is shutting down its mutual fund suite.

Chris Kostiz
Advance Capital Management, Inc.
President
Southfield, Michigan-based Advance Capital Management [profile] reveals in a recent filing that it will liquidate its four Advance Capital I mutual funds by March 31, 2017. The funds have a combined $221.8 million in AUM.

Advance Capital's mutual funds include: the $97.7-million, three-star Advance Capital I Retirement Income Fund; the $75.4-million, three-star Advance Capital I Balanced Fund; the $41.5-million, three-star Advance Capital I Equity Growth Fund; and the $7.2-million, two-star Advance Capital I Core Equity Fund.

Advance Capital launched in 1986, and the balanced and equity growth funds debuted in 1987. The wealth management RIA now has $2.4 billion in assets and more than 5,000 brokerage and investment advisory clients. Advance Capital offers model portfolios and separately managed accounts, in addition to mutual funds.

Chris Kostiz, president of the Advance Capital I Mutual Funds, confirms that Advance Capital's mutual funds have primarily been distributed through Advance Capital's own wealth management business.

"We know all the end clients," Kostiz says, contrasting their model with that of firms who distribute their mutual funds through other intermediaries.

Yet Advance Capital's business has shifted, Kostiz says.

"Our business has changed to more of a discretionary platform," Kostiz says, adding that that model accounts for "eighty to ninety percent of new business coming in."

Yet regulation also plays into Advance Capital's move to exit the proprietary mutual fund business.

"The regulatory environment with the fiduciary rules kind of throws a wrench into it, so we decided to dissolve the funds," Kostiz says. "It's a different environment than it has been in the past." 

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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
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:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use