Canadian mutual fund companies offer adequate and service to financial advisors, but many firms fail to use their client Ssrvices departments to their full advantage, according to a new report.

The report from financial services research firm Dalbar Inc. reveals that while most companies’ client services representatives (CSRs) adequately handle common telephone requests such as account inquiries and requests for mutual fund information, they rarely take advantage of opportunities to help the company increase its sales.

“For most mutual fund companies in 2005, attracting new business is as difficult as it has ever been,” says Randy Carriere, manager of business development at Dalbar. “But when advisors call, CSRs can certainly be more proactive in attempting to overcome that challenge. We rarely saw them do things like promote new funds or sales tools to advisors, even when it was clear that the advisor would likely be interested in hearing about them.”

Of the 15 companies evaluated, the report identified AIC’s CSRs as the strongest at providing service on common inquiries, and tabbed Franklin Templeton Investments as the leader in promoting the attractiveness of their funds and sales tools. Other companies that performed well in serving the advisor community were AGF Funds Inc. and Manulife Investments.

“While it’s not the role of the typical Client Services department to generate sales, most fund companies can do a better job of using this department in tandem with their sales force,” says Carriere.