A new Web venture is hoping to use economies of scale help money managers serve smaller investors who usually cannot afford their services.
MyMoneyPro.com, which opened Monday, gathers clients and does trading for them as a group, said Mike Apker, a former marketing executive from Silicon Graphics who is chief executive of the start-up.
It also does record keeping and back-office work for a handful of top money managers, pays them a fee, tracks their investment strategies, and creates identical portfolios for its investors, Mr. Apker said.
Though the company sees itself competing at first with other money managers and bank trust departments, it has not ruled out partnerships with banks if opportunities arise, Mr. Apker said.
The company is among a growing number angling to profit from the generational wealth transfer that is expected to occur in the next decade. MyMoneyPro.com helps money managers overcome obstacles that have historically impeded their growth, Mr. Apker said. "We're basically an outsourcing company," he added.
People typically need at least $500,000 of investable funds to gain access to a sophisticated money manager, he said, but through MyMoneyPro.com they could open an account with as little as $50,000.
The company's customers may also use its Web site for direct interaction with the investment advisers whose portfolios are tracked, Mr. Apker said.
The company intends to have several hundred million dollars under management by yearend, and eventually to use the services of about 30 money managers, said Viggy Mokkarala, vice president of marketing.