Platform & Services
Independent Service Providers and State of the Art Technology Interfund utilizes a network of service providers that includes a portfolio manager to manage the assets, a network of brokers to execute trades, and custodians /prime brokers to custody the positions, verify the existence and accuracy of trading information and independently calculate the net asset value of portfolios. These service providers work together but are functionally independent. They play a major role in providing operational transparency and safeguarding our investors’ assets from fraudulent activities.
Prime Brokerage Services Our prime broker is Ridge Clearing Services, a division of Broadridge Financial Solutions, a $1.65 billion company spun out from ADP in 2007, which includes Bank of America’s former clearing business. Ridge received “Top Overall Honors” in “The Black Book of Outsourcing” in 2008 among the industry’s top brokerage process service providers. In addition, we employ a secondary layer of outsourcing to interface with Ridge Clearing’s margin department, and access to Bank of America’s InstaQuote through Triad Securitites Prime Brokerage Service. Interfund has had over fifteen years of exemplary service from this dedicated team of traders and operational support staff.
Legal & Accounting Services Legal counsel is provided by Foley & Lardner LLP, a top five firm peer-reviewed by Martindale-Hubbell. Accounting is provided by Stevens Pierce & Associates, an AICPA peer-reviewed accounting firm. Bookkeeping is provided by Sage Bookkeeping. Periodic investment audits have been conducted by RSM McGladrey, the nation’s fifth largest accounting firm.
Compliance and Regulatory Support
Interfund provides the compliance and regulatory infrastructure, as well as the back office support needed for advisors to manage clients’ assets effectively. Portfolios are monitored by Interfund’s investment committee, as well as Interfund’s compliance department.
Operational Transparency At Interfund Capital our clients have ready access and full disclosure to any information pertaining to their individual account, as well as access to our team of professionals and our network of independent service providers.
Structured Organization Interfund Capital is a structured organization with regular external independent controls and documented procedures. We have a disciplined investment process and state of the art resources. We have dedicated personnel for client services, Investment Advisors, marketing and investment strategy. Our key investment personnel own the business and have significant personal assets invested in the business.
Bloomberg Terminals Bloomberg terminals provide real time market data and connectivity to more than 350 exchanges, with the monitoring, alerting and technical analysis tools to support multiple market classes. Market coverage crosses Equities, Futures, Options, Fixed Income and Currency Markets.
Advent Axys Portfolio Management Advent’s Axys is a portfolio management software system that supports diverse product types and investment styles. Axys offers customizable reporting and investment tracking and reporting and is supported with a dedicated back office support team.
Interactive Research Database Interfund’s research database, Dashboard, is a wiki-based collaborative tool designed to maximize collaboration between the Interfund team. Interfund’s Dashboard offers our team a synchronized knowledge base with on-demand access to information and near real-time access to conversations. By accessing the collective intelligence of Interfund’s team we share information, invite critique, present multiple points of view and debate ideas in a rich collaborative intellectual environment. This then creates a competitive advantage over larger firms in the form of increased innovation, productivity and agility.
Interfund Capital © 2009 - www.interfundcapital.com
Interfund Transition Team
A Smooth Transition Interfund’s dedicated transition team will assist you from the pre-transition process through the successful transition of the majority of your accounts. The benefits of Interfund’s transition process include: • • • • •
Ability to Focus on Clients Day One Plan Absorption of Transition Costs Strategic Transition of Accounts Long-term Account Growth and Penetration
Ability to Focus on Clients We know that you need to hit the ground running. We will set up administration, compliance, technology support, and research so that you can spend the majority of your time focused on your clients.
Day One Plan We believe that a successful Day One transition plan is critical to a successful overall transition. We make an investment in you prior to your first day of employment so that we can ensure a smooth transition of your accounts. Day one planning includes: • ACAT preparation and overnight mailing the day before your first day at Interfund • Immediate temporary office headquarters after your resignation so that you can telephone and email your clients about your transition • Interfund client welcome package for all clients • Press release announcing your affiliation with the firm • Preparation of a letter to clients announcing your affiliation with the firm and new contact information • Interfund business cards and letterhead
Absorption of Transition Costs We intend to absorb the transition costs to provide the following services: • • • • • • • •
Office Rent, repairs and maintenance Utilities (phone, fax, online services) Office supplies and expenses Information Technology (Hardware, software and maintenance) Insurance, Business Insurance Health insurance benefits Payroll taxes Taxes and licenses
Support for Both Existing Offices and New Office Set Up We will support your decision to work at the location where you are established or in new offices we establish. The location of the office space is up to you. We will find space for you or use space that you have selected. We may also establish an Investment Advisor hotel for several groups setting up practice in the same geographic area.
Strategic Transition of Accounts We will assist you in successfully transitioning your accounts. We believe that the majority of accounts you wish to transfer will make the transition. However, if some accounts are exhibiting challenges in transitioning, we will provide you with strategic sales and marketing plans to facilitate the transition.
Long Term Account Growth and Penetration Your transition to Interfund is a growth opportunity. It is an opportunity to review and renew your book of accounts. Our experience has been that this review process provides access to new pools of money and additional funds that were previously unavailable to you. It is a chance to grow and penetrate many accounts.
Interfund Capital © 2009 - www.interfundcapital.com
A New Business Model
The Best of Both Worlds We are experiencing a long-term fundamental shift in the wealth management industry. Ongoing issues concerning counterparty relationships, the near collapse of the financial system and the consolidation of brokerage firms have raised important questions regarding the importance of fiduciary relationships to clients and the long-term viability of the broker/dealer business model. In this environment, many financial consultants are considering transitioning to an investment advisory practice that is free of conflicts of interest and restrictive corporate policies. Interfund Capital was founded by traders who foresaw the need for investment advisors capable of servicing sophisticated clients. Independent-minded and entrepreneurial advisors thrive in our unique culture where they have more control over the strategic direction of their business and their career. They appreciate the opportunity to manage funds in the manner they deem best and the location where they are established. Our team aspires to provide institutional-style expertise at investment advisory prices. Interfund has created a small full-service firm with a lean infrastructure. We employ nextgeneration technologies to facilitate research and administration. Web-based research supports on-demand information sharing resulting in faster decision making, greater productivity and a higher velocity of ideas.
Equity Ownership Interfund has established an equity partner program for Investment Advisors. Twenty-five percent (25%) of the equity of the Interfund Wealth Management Division has been made available for affiliated Investment Advisors. After a two year period with the firm, Investment Advisors will be entitled to non-voting shares of the Interfund Wealth Management Division on a buy-in basis, at the discretion of the Principals and shareholders of the division.
Succession Planning Interfund Capital has an array of succession plans in place that can help you annuitize the income streams on your book of business.
Business Model
Interfund
Wirehouse
Independent
Payout Flexibility
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x
Choice of Work Location
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Control over Strategic Vision
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Self-Directed Mission
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Control over Career Path
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Segregation of Service Providers
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Interests Aligned with Clients
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x
Pricing Control
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Efficient Infrastructure
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Proprietary Partnerships
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Low Support Staff to IA Ratio
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Structured Organization
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Exit Strategy
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Restrictive Corporate Policies
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Restrictive Employment Covenants
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Firm Culture
Interfund
Wirehouse
Independent
Unbiased Advice
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x
Entrepreneurial Spirit
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Think-Tank Environment
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Established Working Relationships
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Old-Fashioned Research Environment
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Majority of Time Focused on Clients
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Collaborative Research Environment
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Operational Support Provided
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Interfund
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Wirehouse
Bloomberg
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Axys Portfolio Management
x
Outside Research
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Prime Brokerage Service
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x
Investment Advisor Group
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x
Legal Counsel
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Client Reporting
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x
Training/Licensing
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Regulatory Compliance Support
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Marketing Support
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Identity & Collateral Materials
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Website Support
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Administrative Support
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Client Service Support
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Medical Coverage & Insurance Plans
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Interfund Capital Š 2009 - www.interfundcapital.com
Independent
Interfund Capital Š 2009 - www.interfundcapital.com