Reaping relationships from the fecund 401(k) ground, Ariel Capital Management is gathering the fruits that follow from value style of investing. The Chicago-based fund firm is distributing through the channel by calling in chits developed over several years.

The firm also has plans to develop its fee-based advisor channel, as well as its separate accounts business. Building on these distribution channels leaves no room in the Ariel business model for subadvisory services, according to Marilyn Kosier, senior vice president.

"There's been a very key initiative in marketing to third-parties, so that 401(k) plans can easily select us," said Kosier. "We've really been working with our third party relationships for the last 2 years and our goal is to harvest."

Harvesting these relationships has put the fund family, which increased assets under management from $634 million in March 2000 to a current total of $931 million, on all of the major platforms including Fidelity, Schwab, T. Rowe Price, Merrill Lynch, Vanguard, and CitiStreet's SSB.

"We're taking a speed boat approach," said Kosier, "Since we don't want to be a big boat, we want to be really smart about we to do. That's why we work on strategic party platforms: whether they come direct or through a recordkeeper, we're there."

Related stories:

Thompson Flies Into New Ariel Position, 07/23/1999

 

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