Many Investors choose to invest their money in total market index funds or funds that are indexed to a certain industry or type of company. Fund.com believes that it possess significant competitive advantages over its main competitors, Frank Russell Company and Standard and Poor’s. Their participation will include no direct creation; Indexes created by them are sold to Money Managers. This therefore makes them reliant on the successful sales of the Indexed Funds sold by the Management companies.
They have a long-term trend of offering the investment community new and innovative investment ideas through EQUITIES magazine. Sir John Templeton of Franklin Templeton Funds is quoted saying, “EQUITIES magazine is a treasure chest of new investment ideas.” Through leveraging EQUITIES magazines trust they intend to market these indexes to Close End Funds. They also intend to market the Funds that use their indexes to EQUITIES magazine readers and online Fund.com users.
Current Indexes such as their hedge Fund index has returned 19% annually with no downside risk since it is principal protected. The indexes are created by cluster analysis, a well-respected method endorsed by Bank of Mellon.
After customers choose to use their Indexes, a percentage of Assets under management is paid to them. A 50 basis point fee is the average charge. They intend to conduct sales through their existing channels of Fund advertisers. Licensing offers an extremely synergistic business for the company. It gives them access to a recurring stream of revenue as they plan to offer long term Indexes.
An experienced management team heads fund.com, an Online Media company that focuses on connecting Investment Fund buyers and sellers. The company, backed by EQUITIES magazine, an established brand that has served retail and institutional investors since 1951, intends to create a Marketplace for Investment Funds sellers and buyers to generate recurring revenue through Index Licensing. The company recently merged into Eastern Holdings and now trades on the Over-The counter exchange under the symbols FNDM.
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