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20 Cards in this Set

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What are "Assets Under Management?"
The sum total of all assets that an FA has in his or her accounts?
What is a frequent abbreviation for "Assets Under Management?"
AUM
How can AUM increase?
The market value of the stocks or bonds in the portfolio can increase and the FA can bring in additional assets from existing and new clients.
What is ROI?
It stands for "Return on Investment" and it is the revenue an FA generates in a given year divided by the total AUM. An FA generating $1 million in gross revenue from an asset base of $100 million would be 1%
What would be a low ROI?
Probably less than .6%
Why might ROI be low?
There are several reason ROI can be low. 1) A client might have a very large stock position deposited in an account but which earns no ongoing revenue or fee. It just sits. 2) People who do a lot of bond business typically have a low ROI because the commission bonds pay is very low. 3) Someone with large client base whose has not converted to fees will have a low ROI.
If you see an ROI of 1%, what do you know about the book?
It has probably been largely converted to fees.
Suppose you see an ROI of 1.2%?
This person is probably a stock trader. An ROI this high is very hard to maintain.
What is the "law" as far as revenue and AUM is concerned.
Revenue is proportional to Assets Under Management.
What is the "Find the Money" Campaign
It's a 2-page letter and 1-page questionnaire.
How is FtM sent?
We send it in a unique manner called "re-run." To do a full-blown re-run campaign, someone gets on the phone can calls everyone who will receive the letter and does what we call a "Watch for it" call. Basically, this tells them it's coming. Then we send the letter and questionnaire. Normally, we get about a 20% response on the first run of the campaign. When the responses dry up, we send another run. It's a different letter but the same questionnaire. Once again, we will get about a 20% response. Then we do it a third time, again with about a 20% response. We then hunker down and call the remaining non-respondents.
What are the three objectives for FTM?
The campaign has three objectives: 1) Learn to use the system. 2) Find money. 3) Find referrals.
If an FA finds a big tax refund, where will that be entered in Gorilla?
It will be entered in the Opportunities form?
How does Gorilla help an FA increase AUM from clients?
We find all the outside assets and bring them in.
What are the two strategies for bringing in outside assets.
We call these "Smother them with Service" and "One Asset at a Time."
How does "Smother Them With Service" work?
When someone opens an account, we first run "Red Carpet." This sets off a chain of letters and phone calls that stretch over several weeks. The purpose of all this communication is just one thing: smother the client with good service first. We continue that smothering with monthly drip, birthday, anniversary and etiquette letters. Then it's time for the first quarterly review. Naturally, you instruct the client to bring in all their statements. You review all their assets, occasionally telling your client, "Make a note to ask Joe over at XYZ to keep an eye on the Brazil High Growth Fund. I'm concerned about that." This continues every quarter. In 12 to 18 months after you open the account, the client will tell you, "You're doing all the work. Why don't you just transfer everything here."
How does "One Asset at a Time" work?
When someone opens an account, we first run "Red Carpet." This sets off a chain of letters and phone calls that stretch over several weeks. The purpose of all this communication is just one thing: smother the client with good service first. We continue that smothering with monthly drip, birthday, anniversary and etiquette letters. Then it's time for the first quarterly review. Naturally, you instruct the client to bring in all their statements. You review all their assets, occasionally telling your client, "Make a note to ask Joe over at XYZ to keep an eye on the Brazil High Growth Fund. I'm concerned about that." This continues every quarter. In 12 to 18 months after you open the account, the client will tell you, "You're doing all the work. Why don't you just transfer everything here."
How often is the Opportunities Due report run?
Every week.
How is the Computer Operator prompted to run the Opportunities Due report?
There is an item on the CO Daily Task Checklist that instructs the CO to run the report each Thursday so it can be taken to the staff meeting on Friday.
What should the FA do with the Opportunities Due Report
He or she should study it and mark it up with people he wants to talk to and see and then give it to the SA who will chase up everyone the FA has marked.