August 30, 1994
TO: BOARD OF GOVERNORS NO. 90-94
DIRECT MARKETING COMMITTEE NO. 26-94
INDUSTRY STATISTICS COMMITTEE NO. 17-94
MARKETING POLICY COMMITTEE NO. 40-94
MEMBERS - ONE PER COMPLEX NO. 61-94
PUBLIC INFORMATION COMMITTEE NO. 30-94
RESEARCH COMMITTEE NO. 24-94
SALES FORCE MARKETING COMMITTEE NO. 34-94
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 24-94
RE: Mutual Fund Distribution Channels: Understanding
Shareholder Choices
__________________________________________________________
I enclose a copy of the most recent publication from the Research
Department C Mutual Fund Distribution Channels: Understanding
Shareholder Choices.
Because the road shareholders travel to purchase mutual funds is a
key component of mutual fund marketing, mutual fund companies need
to understand the role of distribution channels in the investor's
fund purchase process. Based on interviews with more than 700
long-term fund shareholders, this report investigates shareholders'
use of the following six primary distribution channels: full-
service broker, discount broker, insurance, bank, financial
planner, and direct market. The report provides a detailed
analysis of the channels shareholders currently use as well as
those used to purchase their first and most recent mutual funds.
The study also examines the channel from which they expect to
purchase their next mutual fund and the channels shareholders say
they will no longer use. The report presents the reasons why
shareholders use particular channels and a segmentation analysis
based on shareholders' investment needs.
Please note that with all ICI reports of this type, only ICI
members initially will receive copies. After six months, the ICI
usually makes such reports available to nonmembers for a fee.
For comments or questions about this report please contact Vicky
Leonard-Chambers at (202) 326-5918. For additional copies call Ada
Simpson at (202) 326-5913.
Sandra J. West
Director, Marketing Research