MutualFundWire.com: Capturing The Newly Rich

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Monday, December 6, 1999

Capturing The Newly Rich

Eight years of economic boom has put a lot of money in circulation. However, according to Evergreen Funds, many of the individuals who have benefited are unsure of what to do with their new-found wealth.

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In response, Evergreen has created a product to help financial advisors capture and retain money in motion. On February 1, 2000 RIAs will have access to Evergreen's WealthPlan, a new business building package directed towards clients who have received large cash pay-outs such as inheritance, a sold business, a 401(k) rollover or a divorce settlement.

WealthPlan consists of several components including suggestions for networking and prospecting, client information broachers, seminar marketing kits, and a quarterly newsletter called WealthWatch and broker sales ideas.

Ruth Papazian, senior vice president of marketing at Evergreen Funds said, "Almost half of people receiving a large amount of cash have current household incomes of $50,000 -- they are about to become 'rich.'"

And Papazian added that of that group, 84% will be seeking out investment advisors and 59% will invest all of their windfalls.

Advisors fall short of realizing the importance of networking and the exchange of information, Papazian said. "To get business from others you must first give business to them."

Recently, Fidelity launched a similar product called BusinessPulse which included a magazine dedicated to delivering sales and marketing strategies, new fund updates and seminar kits. But most advisor products like BusinessPulse focus less on the newly- or soon-to-be wealthy and more on the highly sought after high-net-worth segment.

This type of product is becoming increasingly popular and necessary as fund firms find it necessary to help their advisor partners retain ever-more-fickle clients, as well as help wealthy investors with inheritance or severance planning.

Before creating WealthPlan, Papazian said she used focus groups to determine what was important to include in such a package -- what advisors wanted and what they didn't want. "They didn't want an overwhelming amount of copy in literature, just bites. They also wanted networking materials," she said.

Printed from: MFWire.com/story.asp?s=25258

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