As I've mentioned on some other threads a trainee in my office has opened 10 accounts month to date cold calling with new issue preferreds(did I spell it right?). The issues arenot sensational with yields just above 6%. The accounts have ranged from $5000 to $100,000, with most between 10 and 20K.
The rookie is using a multi call approach. The first call is actually on Tax Free bonds. She uses it to identify fixed income buyers, probes for interest and puts positive responders on the call back list. She is very low key and isn't twisting any arms.
For anyplanner/allocators reading this and trying to figure out how you could fit cold calling for prefferreds intoan allocation, fee or planning business try this:
1. Cold call with a fixed income product. Develope a relationship over the course of several contacts by phone and mail.
2. Open the account with a good preferred, corporate, muni. Sometimes the account opens on the second call, other times it doesn't open for years. Keep at it. When it happens, it's the first trade.
3. Spread every couple weeks call the customer(not a client until they buy several times)and get trades 2, 3, and 4. All fixed income.
4. Now about three months into the relationship call them and tell them about how down there at Superior Investment Management finding excellent income opportunities is only a small part of what you do. Tell them, We specialize in helping people, just like you, achieve their investment goals by utilizing a unique proprietary bottom up, top down, upside down, inside out investment methodology and I'd like to get together with you to see how we can add value to your situation. Does that make sense? Are daytime or evenings better for you?
5. Get it done.
6. Fallback, they don't like the upside down inside out approach your firm espouses? No problem you've still got a fixed income client.