Plan offers small banks a leg up in mutual funds.

Forum Financial Group has teamed up with a unit of one of the nation's top mutual fund companies to launch an investment management service tailored to community banks.

The Turkey Portfolio Plan, offered in conjunction with the Dais Group, a subsidiary of the Franklin/Templeton Funds, is being promoted as a way for small banks to band together in creating proprietary mutual funds.

Under the plan, banks could choose among several model mutual fund portfolios, including a growth and a growth and income fund.

Pooling Resources

The plan may have special appeal for small and midsize banks that want to offer a proprietary mutual fund but lack the scale to do so efficiently, said Lynn Sullivan, marketing director of the Dais Group, New York.

By pooling their resources, these banks could dramatically cut the cost of entry into the mutual fund management business, she said.

Banks starting their own proprietary equity fund would incur start-up costs of up to $500,000. Dais reduces those costs to between $50,000 and $100,000.

In addition, Ms. Sullivan said, banks could keep up to half of the revenue for managing the investments. Banks would also retain control of their client lists and information.

Several banking trade groups at the national and state level are considering endorsing the plan, Ms. Sullivan said.

Forum Financial serves as administrator, distributor, transfer agent, and accountant to the funds.

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