:Linked" fund performance!?

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Sep 4, 2008 12:29 pm

I am currently at EJ and one huge gripe I have always had is linked funds, say, shown in a client account, but held at the fund to save client a few bucks on an IRA fee (now

$40). I cannot get performance data! There is really little point in reviewing the portfolio beyond diversification if you cannot see performance. The fund says they cant do it (yes, usually American), Jones says we cant do it.
 
WHO CAN DO IT? Any help out thar?
Do you Indies get the performance data on linked funds?
DST doesnt do it either.
 
Thanks!
 
 
Sep 4, 2008 1:18 pm

performance is linked daily on all funds held outside LPL.

Sep 10, 2008 1:41 pm

What he is referring to is not being able to see the returns in percentages. 

 
What I do is have my BOA edit the cost basis for the original purchases and every purchase after.  That way when you print out a port you will have all the returns too.
Sep 10, 2008 7:07 pm

Jones should make Albridge available so that those linked accounts would be easily accessable( as in various reports are available). I don't think they will because they don't really want you using direct accounts for two reasons. First they lose fee revenue, and second, if you leave, the accounts are easier to move. They sure do not like either of those situations, even if it it better for the client.

Sep 11, 2008 1:39 am

It has actually been recommend to me to use direct accounts when dealing with IRAs......to save on the annual fee.  This is from my trainer and RL.

Sep 11, 2008 11:55 pm

Hey, Yall,

i
I am always for saviing clients money. Its just a shame that at a major firm like EJ, the FA or staff have to enter cost basis info-especially on DCA buys!-to get performance data on accounts  held at the fund.
I am told LPL get this info updated daily. I dont know about other firms.
Sep 12, 2008 2:52 am

This thread is a joke.  Why on earth would you link your funds?  Other than 529's and 403b's, why the hell would you want to link anything..... If your client is going to worry about a $30 difference on the first IRA and a $10 difference on the second, assuming the total household is under 500k, why even have that person as a client?  I can honestly say I don't have a single linked mutual fund account except what I have too.  This has got to be one of the most rediculous threads I've seen in a while.

Sep 12, 2008 6:58 pm
rankstocks:

This thread is a joke.  Why on earth would you link your funds?  Other than 529's and 403b's, why the hell would you want to link anything..... If your client is going to worry about a $30 difference on the first IRA and a $10 difference on the second, assuming the total household is under 500k, why even have that person as a client?  I can honestly say I don't have a single linked mutual fund account except what I have too.  This has got to be one of the most rediculous threads I've seen in a while.




I respectfully disagree that this thread is ridiculous. When I was at EDJ I had several clients that were very stern on saving money on the IRA fee. I had one lady who I practically begged to allow me to move her 150k+ acct into a EDJ S/D IRA so I could actually tell her how her account was doing and she flatly declined.

It was frustrating because I could have offered more in terms of investment choices and performance data. At the end of the day, it is their money, their choice, and in this case, I am sure that one of the reasons that this woman in her early 40's had 150k+ in her account was because she knew not to spend $40, when $10 got the job done.

Since I have left EDJ, I have put as many people in linked/fund-held IRA's as is appropriate. I had a good deal of monthly systematic investors who started IRA's from scratch and had only Mutual Funds from one family. There is no reason to set these clients up with anything more complex until their needs become more complex and replicating this in a brokerage account is a more expensive solution.

Also, if I decide, down the road, to change B/D's again, then the paperwork is far less complicated and no cost incurred by those with a linked IRA.

If a client has nothing but mutual funds and is placed into a EDJ S/D IRA, then I would think that the biggest argument for such action is that the $40 annual fee is credited to the Fa's Profit & Loss Statement and if you are profitable, then you reap a bigger bonus check.

I had the chance to see Jim Phillips' Commission Screen and P&L while at a training session in STL. I respect Mr. Phillips and this is not meant to be derogatory, just a statement supporting my previous argument. Disclaimer given, his fee revenue from IRA fee's, TOD's, Dividend Reinvestment, lions, tigers, and bears, etc was more than his total expenses, direct and allocated.

I'll say this again for those bad at math. The revenue from non-commission streams was more than his expenses. That means a bigger trimester bonus.

I have met Mr. Phillips and from what I saw he is most likely worth it. (Nutty Professor meets Mr. Rogers, If I was in NC, I would give my accts to him.)

To recap my points since I went on a rant:

1. Clients with simple needs should pay accordingly
2. Clients with simple needs in the more expensive option could benefit the FA more and certainly benefit EDJ more than the client

Bonus point: Linked accounts move with a simple dealer change request from the client.