FundPOINT Share Class Analyzer

An industry-first tool to help advisors assess the appropriate share class of a fund

• Calculates the appropriateness of share classes for a given mutual fund and generates POS disclosure form
• Creates custom "on-the-fly" scenarios based on specific share class, investment amount, and investor time horizon
• Offers the industry's only functionality for including sytematic withdrawals into the share class analysis
• Deploys as a Web-ready desktop tool or offers an integrated solution that's custom-built into your order management system and accessible through your Intranet

Overview

Recently the SEC and FINRA (formerly the NASD) have tackled the topic of share class suitability for investors in load funds. The impetus was concern over inappropriate trades in which brokers directed investors to B and C class shares rather than realizing "breakpoint" discounts with A shares. Since 2003, FINRA sweeps of brokerage firms have resulted in more than $50 million in fines.

Your registered representatives need to consider three factors when evaluating the appropriate share class for any investor: 

• the specific share class structure (e.g., A, B or C shares)
• the initial investment amount, and
• the investor's expected time horizon for holding the fund.

For every mutual fund sales transaction, there are also a variety of other disclosure rules that need to be covered at the point of sale. These include communicating annual expenses, load charges, breakpoints, Rights of Accumulation linkage rules, redemption fees, and conversion features. Traditional resources - such as paper prospectuses and statements of additional information (SAIs) - are frequently outdated. In fact, the SEC places anywhere from 200 to over 1,000 new filings to its EDGAR database on any given day. To complicate matters further, there is little standardization among share classes from fund to fund.

FundPOINT's Share Class Analyzer Simplifies "Suitability" Compliance

For every situation in which a rogue broker manipulates share classes to exploit an investor, there are many more situations where an investor is being overcharged because a bewildering maze of share class choices and mutual fund rules confused the broker trying to do due diligence. FundPOINT's Share Class Analyzer^SM is the industry's only desktop calculator designed to help advisors assess the most appropriate share class of a fund, and provide point-of-sale (POS) disclosure.

Part of FundPOINT Desktop (a Web POS productivity tool), Share Class Analyzer helps registered reps create dynamic share class "scenarios" in an easy-to-use desktop application. Share Class Analyzer puts the rules for all the funds of a broker/dealer organization at the registered rep's fingertips, allowing the investor to explore investor scenarios "on the fly" for an optimal share class fit. It includes the industry's only functionality for including systematic withdrawals in the share class calculation, rendering a more accurate cost/value analysis. And Share Class Analyzer systematically generates a point-of-sale disclosure form in electronic or print format - ensuring compliance peace of mind for your employees, investing confidence for your clients, and complete auditability for your firm.

Share Class Analyzer can quickly be offered on individual desktops or safely integrated within your internal order management system. Via your company Intranet, you readily link the home office with branch offices, and front-end sales with back-office trade surveillance. It's the most accurate, paperless, and economical way to meet stringent "suitability" requirements with daily updated, EDGAR-sourced information.

NewRiver's Share Class Analyzer provides ready access to all U.S. open-end mutual funds through a simple Web interface that creates custom investor scenarios based on the investment amount, specific share class structure, and investment time horizon. Dynamic charts provide projected value and expense comparisons by share class.

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Who's It For?

FundPOINT's Share Class Analyzer helps assure consistent mutual fund share class suitability compliance across your firm, including:

• Registered Representatives
• Broker Assistants
• Call Centers and Sales Desk Agents
• Operations Staff
• Compliance Professionals

Coverage

Powered by NewRiver's patented process technology, Share Class Analyzer covers all U.S. open-end mutual funds (load shares) and meets key goals for mutual fund sales outlined under FINRA 02-85.

Key Features

 Related Products

• FundPOINT Data
• FundPOINT Desktop
• FundPOINT Monitor
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