It takes knowledge to source new investors for your fund. Data that can be used to make decisions provides insight. The investor record-keeping system of your transfer agent partner should give actionable data. However, this is a rarely seen. Only a few transfer agent companies have developed technologies that can provide thorough sales and marketing reports based on data from the transfer agent system.
Transfer agent firms use ‘investor record-keeping’ or ‘transfer agent’ systems to manage their clients’ investor databases. Transfer agent firms have devised or adapted a variety of system solutions to manage the back-office activities of fund sponsors since the alternative investment market lacks a single record-keeping technology. Some transfer agent systems are tweaked versions of systems designed for publicly traded funds, which have quite distinct back-office needs. Some are a jumble of systems that have been cobbled together in an attempt to provide all of the functionality required by transfer agents. Some ‘transfer agent’ systems are merely repurposed CRM systems.
Only a few transfer agent systems are designed from the ground up to manage specialized alternative investment funds. Fewer transfer agents have the ability to integrate investor, advisor, sales and transaction data to deliver relevant insights to the fund sponsor’s sales staff in order to facilitate new sales.
With such a transfer agent system in place, sales teams can find new investors by identifying the most fertile ground highlighted by previous sales success. An advanced transfer agent system’s reporting capability discloses which financial advisers have the finest track records, who are the most dependable and long-term investors, which geographies are the most fertile, and what the demography of the top investors looks like. A transfer agent system can provide important sales intelligence to management, allowing them to raise more capital. Only a sophisticated transfer agent system with complete reporting features can turn transfer agent data into useful sales information.
A transfer agent system can also help sales by making the new investment procedure more efficient. Connectivity to industry platforms like AIP and DST FAN Mail, as well as transfer agent system connections with electronic subscription systems and direct digital inputs from client website subscription forms bring alternative fund investing closer to the experience of participating in a mutual fund.