What do you Cold Call With?
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[quote=FreeLunch]
"The reason I called is b/c I wanted to share a quick investment idea with you that...."
[/quote] Sounds like something a penny pusher would say.
I tell them what I do and how I can help them preserve their wealth and maximize opportunities of making money in the markets.
[quote=NaturaLogarithm
I tell them what I do and how I can help them preserve their wealth and maximize opportunities of making money in the markets.
[/quote]
Man - Thats the most fantastic advice I've ever received! Where did you come up with that?
[quote=wallstreeter]
Is there any explainable reason why some of these UITs have such great track records when compared to regular mutual funds?
1) Backtesting.
2) No active management to "add value"
If the UIT is down and the market is looking fairly weak at best, would you sell out of the UIT or continue to hold being that you have subscribed to their 15 month cycle?
I don't try to time the market. The market never looks strong or weak to me. It always looks the same. I don't have a clue as to whether it will go up or down today. If I liked something when it was worth $10 a share, shouldn't I like it even more at $8 a share? Typically, if I make an investment change for the client, something has changed about the client, not the market. They are closer to their financial goal, the investments need rebalancing, etc.
This is not quite right. A mutual fund mgr can roll over a fund's entire portfolio within six months. The two buyers could be getting very different funds.
Bondguy, they are getting the exact same fund. It is now July. Person A bought the fund in January. Person B bought the fund in March. Person C bought the fund in June. They all own the exact same investment. Their holdings are identical.
This would not be accurate if it was a UIT.
[quote=anonymous]
This is not quite right. A mutual fund mgr can roll over a fund's entire portfolio within six months. The two buyers could be getting very different funds.
Bondguy, they are getting the exact same fund. It is now July. Person A bought the fund in January. Person B bought the fund in March. Person C bought the fund in June. They all own the exact same investment. Their holdings are identical.
This would not be accurate if it was a UIT.
[/quote]
Really? Same allocation? Same embedded CG's? Same everything?
The fund on July 31st has the same holdings regardless of when the person purchased the fund. That is all that I'm saying.
Someone who purchases the January series ABC UIT has different holdings than the person who purchases the February series ABC UIT.
[quote=anonymous]
The fund on July 31st has the same holdings regardless of when the person purchased the fund. That is all that I'm saying.
Someone who purchases the January series ABC UIT has different holdings than the person who purchases the February series ABC UIT.
[/quote]
Don't mind me. Go back to arguing about MF's with someone who calls himself "BONDguy."
[quote=Bobby Hull][quote=anonymous]
The fund on July 31st has the same holdings regardless of when the person purchased the fund. That is all that I'm saying.
Someone who purchases the January series ABC UIT has different holdings than the person who purchases the February series ABC UIT.
[/quote]
Don't mind me. Go back to arguing about MF's with someone who calls himself "BONDguy."
[/quote]
Is my lack of fund knowledge that transparent?
[quote=anonymous]
This is not quite right. A mutual fund mgr can roll over a fund's entire portfolio within six months. The two buyers could be getting very different funds.
Bondguy, they are getting the exact same fund. It is now July. Person A bought the fund in January. Person B bought the fund in March. Person C bought the fund in June. They all own the exact same investment. Their holdings are identical.
This would not be accurate if it was a UIT.
[/quote]
Aon, you are speaking of the one and only mutual fund with a static portfolio? If that is the case what is the use of active management? And why are shareholders paying these guys?
The point you make with UITs is correct. However, whatever UIT holdings you buy, you keep for the life of the UIT. So while series 5 may be somewhat different than series four, the holdings within these series never change. Of course there are a few exceptions.
Meanwhile, over at Mutual funds of America, the holding change on a daily basis, with some funds experiencing a 100% plus annual rollover rate. Which, strangely enough, is exactly what their shareholders are paying them to do. Well, except for the fund that you mentioned.
I think the point anon is making is that no matter when you bought the fund whether it is January, March, or June, by July, everyone holding the fund will own the same thing. They will have all bought different portofolios, but by July they will all hold the same portfolio. With the UIT's of course, whatever they would have bought in January, March or June would stay static and would be different from each other in July. Of course this doesn't mean much since they likely all have very different gains or losses in the holding.
[quote=BondGuy][quote=anonymous]
This is not quite right. A mutual fund mgr can roll over a fund's entire portfolio within six months. The two buyers could be getting very different funds.
Bondguy, they are getting the exact same fund. It is now July. Person A bought the fund in January. Person B bought the fund in March. Person C bought the fund in June. They all own the exact same investment. Their holdings are identical.
This would not be accurate if it was a UIT.
[/quote]
Aon, you are speaking of the one and only mutual fund with a static portfolio? If that is the case what is the use of active management? And why are shareholders paying these guys?
The point you make with UITs is correct. However, whatever UIT holdings you buy, you keep for the life of the UIT. So while series 5 may be somewhat different than series four, the holdings within these series never change. Of course there are a few exceptions.
Meanwhile, over at Mutual funds of America, the holding change on a daily basis, with some funds experiencing a 100% plus annual rollover rate. Which, strangely enough, is exactly what their shareholders are paying them to do. Well, except for the fund that you mentioned.
[/quote]Bondguy, you are missing my point.
Bondguy buys Mutual Fund of America on January 1st.
Anonymous busy Mutual Fund of America on March 13th.
It is now July 31st. Bondguy and Anonymous own the same investment.
The holdings inside of the investment change. The investment does not. Everyone who buys Mutual Fund of America owns the same thing. It does not matter when they made the purchase. It does not matter if the turnover is 200%, 100%, or zero.
I'm not saying that Bond Guy and Anonymous bought the same underlying portfolio at time of purchase. The underlying portfolio is always changing, thus all new purchasers will always be buying what existing shareholders currently own.
[quote=anonymous]
Bondguy, you are missing my point.
Bondguy buys Mutual Fund of America on January 1st.
Anonymous busy Mutual Fund of America on March 13th.
It is now July 31st. Bondguy and Anonymous own the same investment.
The holdings inside of the investment change. The investment does not. Everyone who buys Mutual Fund of America owns the same thing. It does not matter when they made the purchase. It does not matter if the turnover is 200%, 100%, or zero.
I'm not saying that Bond Guy and Anonymous bought the same underlying portfolio at time of purchase. The underlying portfolio is always changing, thus all new purchasers will always be buying what existing shareholders currently own.
[/quote]
We get your point, but we have no clue as to why you're making it. What's the point to your point?
[quote=BondGuy][quote=anonymous]
Somebody who bought a mutual fund 6 months ago owns the exact same fund as someone who buys it today. You can't buy the UIT that somebody bought 6 months ago. It has the same description, but it is a completely different UIT.
[/quote]
Anon, I see your point. I took you to mean portfolio when you meant fund name.
My thoughts... take time to actually do some background research on the person you're calling. HNW individuals get calls constantly if they're not DNC. Stand out by showing them you actually know one damn thing about them and can relate.
One word: GOOGLE.
[quote=Wildcat_02]
My thoughts... take time to actually do some background research on the person you're calling. HNW individuals get calls constantly if they're not DNC. Stand out by showing them you actually know one damn thing about them and can relate.
One word: GOOGLE.
[/quote]
If some a-hole calls me during dinner and knows more about me than my wife I promptly hang up the phone, close the driveway gate, enable the alarm system and curse google in my sleep. Rich people don't want broke rookie brokers to know all about them.
I've done countless focus groups regarding investor's attitudes and one of the things that comes through loud and clear was tossed into the above post.
When asked how they respond to cold solicitations of any type--but especially cold calls--the universal reaction is that it's a new broker on the phone and there really isn't much reason to talk to them.
As we all know the best thing you can have is a referral, and you have to become comfortable about asking for them.
You hear about guys who will ask angry clients for referrals. I've personally never seen it happen but you do hear about it. That's major chutzpah, but it's chutzpah like that that creates winners in this business.
You have to cold call--it's a truth that is as old as the phone system. However what you do not need to do is verify the prospect's negative impression by sounding stupid or scripted.
If you're reading a script the client CAN TELL no matter how you figure they can't. There's a good way to get rid of a script--it's called knowing what you're talking about.
If your voice conveys the impression you're a dummy try to change it. I'm American by birth, but Southern by the grace of God and I know I sound a bit like a bumpkin--I turn one sylable words into two.
I'm not talking, "Me and Bubba were out here fishing when the spaceship landed over yonder" type stuff--but nobody would mistake me for being from Long Island or the Tidewater area.
I, like many, had to really practice how I spoke, what I said, how I said it and so forth.
None of us like to hear our own voices on a recorder, but they can be excellent tools for making changes. Buy one of those suction cup things for your phone--tape your calls for an hour then listen to them that evening. Don't worry about your accent unless it is so out of the ordinary that it makes the listener not hear what you're saying because they're so fascinated by the accent.
Instead listen to what you're saying. Could you say it in fewer words? Is it germain to the subject at hand? Did you sound relaxed and conversational?
DID YOU LISTEN, or did you talk?
See Putsy? Now that was a post that actually contained some value. Nice work old man.