Third Party Distributor BECON Reaches 2.1 Billion Dollars in Assets Under Distribution

Third Party distributor BECON recently announced crossing a new milestone of 2.1 billion dollars in assets under distribution. BECON’s now nine person strong team distributes offshore mutual funds for a number of asset managers including Neuberger Berman, Cullen, and New Capital in the Americas.

Approximately 1,5 billion dollars in AUM was captured in Latin America for BECON’s original two partners Neuberger Berman and Cullen. For both managers, BECON focuses on the Latin American intermediary markets including private banks, broker dealers, family offices, funds of funds, insurance companies, and independent financial advisors. The strategies receiving the most interest in the region have been led by the following: Neuberger Berman Strategic Income, Neuberger Berman Short Duration Emerging Market Debt, Neuberger Berman Emerging Market Debt Hard Currency, Neuberger Berman Corporate Hybrid Bond, Neuberger Berman US Real Estate, Neuberger Berman 5G Connectivity and Cullen North American High Dividend Value

BECON also represents New Capital Funds from EFG Asset Mgt. in both Latin America and US offshore for the same retail segments. Since launching New Capital officially at the beginning of 2020 net sales have now surpassed 600 million dollars through the end of October.

Outside of New Capital flagship Wealthy Nations Bond Fund, the team has been gathering additional assets in CIO Moz Azfal’s dynamic multi asset balanced strategy called Strategic Portfolio.

Adapting to the new environment

BECON has been highly active transitioning its regular wholesale model of in office visits to the new virtual environment driven by the spread of the pandemic. BECON’s partners from Neuberger Berman, Cullen, and New Capital having been hosting virtual events in local languages bi-weekly in order to keep investors informed. In addition, they have lightened things up by offering clients more creative events such as cooking classes by world renowned Michelin star chefs, live virtual comedy events and concerts, as well as motivational events with professional athletes such as former NBA star Manu Ginobili from the San Antonio Spurs.

“The first months of Covid19 were extremely challenging” commented Jose Noguerol, Managing Partner from BECON. “Our priorities were keeping clients calm and informing them on a daily basis or how performance was developing as well as what perspectives were going forward. After 20 years in the industry the BECON team and I has seen our fair share of crisis before and were not really phased by the volatility. There was an element of trust that you get after having been around in the industry for decades that is priceless in moments like these. Thankfully most of our clients held on through the worst volatility and were able to participate in the recovery”.

BECON is led by industry veterans Jose Noguerol along with Florencio Mas and Fred Bates. “Whilst decades of experience and relationships helped us navigate this crisis it was the younger generation of the BECON sales team that really got us adapt an lead in the new virtual environment” commented Florencio Mas. “Juan Francisco Fagotti, Lucas Martins, Joaquin Anchorena, and Gian Franco de Bonis are all millennials. Their generation gets a lot of bad press in the news but when it comes to adapting and new technology we couldn’t have done it without them. They helped us move at lightning speed to create specialized digital content, video content, as well as execute transitioning ourselves and the clients to virtual forums”.

Managing partner Fred Bates had a more cautionary tone stating “we were all very fortunate that our industry and the team was able to adapt to this new environment and be able to work from home. Not every industry was as fortunate as we are in the financial sector and it is important to stay humble. You never know what waits around the next corner but all you can do is put the clients first and do right by them so things work out in the long term. If there is anything we have learned over the years is to focus on the client first and foremost.” Bates also commented that partners Neuberger Berman, Cullen, and New Capital rallied to do the same and went above and beyond to over communicate with clients in the most challenging times. “We couldn’t have been able to achieve everything we have over the last three and a half years and through the pandemic without excellent partners and some of the best products in the industry” said Bates.

Bates also added that its not just about selling mutual funds and wholesaling. “Building an asset management distribution business from scratch in the Americas is more than just sales. You really have to know your stuff from legal & compliance, marketing, operations, pricing, platforms, distribution agreements, and regulatory requirements now more than ever. The amount of hours we spend on all of the things to make the sales effort successful can make your head spin. I think our partners really appreciate the decades of experience we have not only in sales but these areas as well throughout the team”.

Miami office opening and new agreement to be announced soon

 Now that the 2 billion dollars marker is behind them, BECON is not slowing down. The firm more recently opened their first office on Brickell Ave in Miami and is expanding their distribution in the US Offshore market as well as hiring additional sales support in Latin America.

Partner Bates, Noguerol, and Mas said their main goal is executing more with their existing partnerships but eluded to and exciting new announcement coming soon. The three mentioned that their original business plan was to never represent more than 4 asset managers in the region of which 3 slots are already taken. “From day one, we never wanted to be a supermarket. You have to know the products inside and out and ensure the asset managers think of you as an extension of their team. You can’t do that if you have too many fact sheets in the bag. It’s important our asset manager partners know you wake up everything day thinking of them and their funds no matter if the wind is blowing their way on not. You also don’t want to have too much overlap in the offerings to everyone has a great opportunity to grow AUMs “ ,said BECON’s Noguerol.