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

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

Rating:Institutional Shares Now Utterly Dominate This NTF Platform Not Rated 5.0 Email Routing List Email & Route  Print Print
Friday, February 17, 2017

Institutional Shares Now Utterly Dominate This NTF Platform

Reported by Neil Anderson, Managing Editor

As Fidelity rolls out an institutional NTF platform, another RIA custodian has been making such a push for two and a half years. And that custodian now sees institutional shares totally dominate flows on its NTF platform.

Rich Calvario
Investment Solutions at Pershing
Director
Rich Calvario, director of investment solutions at Pershing, confirms that after two and a half years of focusing on adding institutional shares to its no transaction fee FundVest platform, more than 2,500 of the 7,100 CUSIPs are institutional shares. And the flows picture is dramatic.

"We certainly have seen this play out as we expected," Calvario tells MFWire. "In 2014, 86 percent of net flow into FundVest went to institutional shares. In 2015 it was 96 percent of net flows."

"Last year it went through the roof," Calvario adds. "500 percent of the net flow went into institutional share classes."

FundVest now has about $120 billion in assets. In 2016 more than $5 billion net flowed into institutional shares on the platform, while all other share classes saw net outflows of $4 billion.

"Our clients are using it the way we expected them to use it," Calvario says. "Our goal is to have our clients have the best possible selection of funds to choose from and at the same time keep their cost of doing business down ... Most of them are electing to use these less expensive share classes in their advisory business."

More than 100 mutual fund firms have institutional shares on the platform, Calvario says.

"I give a lot of credit to our asset manager partners. Most of the time when I approached them with this request, they had never been asked before," Calvario says. "Nine times out of ten the mutual fund company saw the benefit, realized that it was in the best interest of our mutual clients, and ultimately decided to add it to FundVest."

"The conversation's getting easier and easier. Now most of the time they've heard it from me or from mutual clients," Calvario adds. "Occasionally we'd be told, 'No.' Many of them are beginning to come back to start the conversation over."

Calvario declined to detail FundVest's pricing for institutional shares. (Word in the industry is that Fidelity is charging 15 basis points for its new iNTF program.)

"We've been able to set a rate that we think is both reasonable and affordable that asset managers have been able to pay," Calvario says. "We don't think that we're challenging the share class of the asset managers too much. Ultimately everyone sort of has to compromise to continue to be successful in this new world." 

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

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
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


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. MFDF Director Discussion Series - Open Forum, July 9
  2. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  3. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  4. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  5. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  6. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  7. MFDF webinar - ETF Conversions, July 17
  8. MFDF Director Discussion Series - Open Forum (New York), July 22
  9. MFDF Ask Anything webinar - AI Edition, July 24
  10. MFDF webinar - Use of Derivatives by RICs, July 29
  11. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  12. Samfund Soiree Boston 2025, August 21
  13. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  14. ICI ETF Conference, Sep 8-10
  15. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  16. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  17. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  18. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  19. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  20. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  21. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  22. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  23. 10th annual Fuse Forum, October 8
  24. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  25. 2025 MMI Annual Conference, Oct 15-17
  26. MFDF webinar - Series Trust Funds - Effective Board Relationships with Advisers, October 15




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use