STATUTORY DISTRIBUTION

Mutual funds are required to have a distributor/underwriter. Statutory or Medallion Distribution is designed to meet the legal requirements for selling a mutual fund. These services will vary depending on the provider, however they typically include:

  • Underwriting/distributing

  • Marketing and sales material review

  • Managing selling agreements

  • Registered representative services

ACTIVE DISTRIBUTION

Investment advisors and fund sponsors who want to create a broader market for their fund may choose to actively distribute or wholesale the fund. They can do this themselves or they may choose to outsource to a third-party distributor. Active distribution may take on many forms, and will vary by fund and provider. Typical distribution activities include:

  • Analyzing distribution channels

  • Creating marketing tools and communications

  • Managing wholesalers

  • Targeting professional buyers

  • Reporting sales metrics and penetration rates