By Lori Pizzani, Mutual Fund Careers Editor and Columnist

April, 2002

April Fool? Are Wholesalers Back in Demand?

Will e-wholesalers make traditional wholesalers extinct?

What does it take to be an internal wholesaler?

We wondered if it might just be a coincidence, or the first signs of a turnaround in the mutual fund job market. But by our count, between two of the popular online job sites, we saw a flurry of new career opportunities for mutual fund wholesalers in March -- internal wholesalers in particular.

For example, Federated Investors posted a search for two marketing representatives/wholesalers, one for St. Louis and one for Houston. The Hartford announced it was eager to hire five wholesalers to work with and support the efforts of Putnam Investment's regional salespeople in selling the Putnam-Hartford Capital Manager variable annuity. Among the cities, spots were available in Detroit, San Francisco and Reno.

Credit Suisse Asset Management, which recently converted its fund group from no-load to intermediary-sold, sales charge loaded, was seeking an internal wholesaler.

Likewise, Alliance Capital posted an ad for an internal wholesaler, and Gartmore Global Investments, the fund management arm of Nationwide Financial, was on the prowl for a telesales manager to manage a team of internal wholesalers in its Pennsylvania headquarters.

Has the mutual fund industry begun hiring back wholesalers and expanding its sales force in anticipation of brighter days? Or are these job postings just reflecting the need to fill seats left vacant by unanticipated departing employees? Is the net-net effect an increase in positions, or a wash sale?

The answer to that actually depends on the individual firm.

While we saw a smattering of new wholesaler positions being offered, several companies were admittedly simply replacing staffers; actually a good sign that indicates further staffing contractions through attrition may have ebbed.

Gartmore Seeks Sales Coach To Rally the Troops. On the Ides of March, Gartmore Global Investments of Conshohocken, Pa. posted a job opportunity. The firm is searching for a manager/mentor to lead its team of internal wholesalers who provide support to external wholesalers, and manage relationships with brokers and other intermediaries. The manager will serve as a coach, providing sales training and developing sales scripts that team members can utilize.

"This is an expansion for us. The business is growing and we are expanding and hiring another manager," said JoAnn Gigliotti, Director, Public Communications with Gartmore. She could not comment further. But it appears that managers that are effective team leaders and can lead by example are still in hot demand.

John Hancock Funds Wants Go-Between for Internal and External Wholesalers. John Hancock Funds of Boston is also auditioning for an inside sales manager to supervise a team of 15 people, and work with two other similarly empowered sales managers. The manager will, among other things, develop a cohesive working relationship between Hancock's insider wholesalers and its external ones, which were recently redubbed "business development consultants."

A Hancock spokeswoman noted that the sales manager candidate will be replacing an individual who left not only the firm, but also the fund industry.

Munder Capital Management Adapts to e-selling. In mid-March, the Birmingham, Mi. mutual fund adviser posted an advertisement for an internal wholesaler for its Detroit office. Although Munder was seeking a replacement for an individual who had left the company, that wasn't the only wholesaling spot the firm was filling.

According to Elise Essick, Vice President, Corporate Communications for Munder, the company had just hired, for the very first time, two e-wholesalers. Their job is to contact and communicate with intermediaries who sell Munder funds predominantly using technological channels of communication which includes the Internet. This is a very new initiative for Munder, Essick explained.

In undertaking the venture, Munder debated whether to split the e-duo's responsibilities geographically, or assign to each specific client-firms to make contact with. Their decision? They divided the firms between them.

Credit Suisse in Hiring Mode, Toying with Virtual Wholesaling. Credit Suisse Asset Management is currently on the prowl for not one, nor two, but three new internal wholesalers to help sell its mutual funds, variable annuity products, sub-advised portfolios, separate accounts, and wrap product offerings to financial intermediaries. But these folks are not just internal wholesalers to Credit Suisse. They're actually being dubbed "investment specialists."

Since its 1999 acquisition, Credit Suisse has been integrating its acquired Warburg Pincus funds, and BEA products into the Credit Suisse family, rebranding them with the Credit Suisse moniker along the way, and merging the sales teams of each unit.

In line with its decision last year to forsake the no-load, direct-to-investor, and fund supermarket distribution channels and focus on all intermediary-sold channels, Credit Suisse has been staffing up. According to Steve Plump, Director and head of wholesale marketing at Credit Suisse, the firm has hired six new external wholesalers within the last nine months, expanding that in-the-field sales force to 14. Plans include the hiring of one more external wholesaler in 2002, Plump added.

Internally, Credit Suisse is seeking three new investment specialists to add to its current team of five. And although it hasn't made a formal commitment to carve out a niche for an e-wholesaler or two, Plump admits this is something the firm is studying very carefully.

Will e-wholesalers Replace Others?

One of the hottest topics of discussion in the industry today surrounds the pronouncement by some that e-wholesalers will become the front line of sales officers for mutual fund companies. So what does that mean for today's ranks of internal and external wholesalers? Are external wholesalers a dying breed?

Not by a long shot, said Lee Kowarski, a consultant with New York-based consulting firm kasina. "Technology will play a role but will not replace the wholesaler relationship," he said. "But the role of the wholesaler is going to change."