Fund companies have only been marginally successful at distribution because they are more focused on gathering assets - as opposed to profits, a forthcoming kasina report indicates. Next-generation CRM (see MFMN 3/17/03) and focusing on individual business units, as opposed to the overall enterprise, are two ways firms can improve their distribution, kasina maintains.

Based on interviews with 70 asset management firms, the kasina report concludes that most firms use a three-tiered approach of prospects, producers and top producers, as opposed to looking at the value and profitability of each intermediary sales partner.

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