Springfield-based EF Hutton to target small investors


Staying with the story

The Springfield News-Sun has provided unmatched coverage of EF Hutton America’s attempt to start a new business model based in Springfield. The paper has provided extensive coverage of the company’s background, how the firm selected Springfield, and why local officials are pinning their hopes on the company to help revitalize the city’s downtown.

EF Hutton America will offer insurance products next year and sees an opportunity to serve customers with smaller accounts who often are ignored by larger brokers, the company’s CEO said Monday.

The financial firm, which has set up its headquarters in Springfield, has pledged to invest about $22 million downtown and create at least 400 jobs over the next five years. Local leaders hope the company’s presence can draw hundreds of workers downtown and encourage more people to live and work in Clark County.

“There aren’t enough investment advisers to service all the people that need investment advice in the United States,” CEO Chris Daniels said while speaking to the Springfield Rotary Club on Monday. “In fact many of the traditional investment advisers turn away small accounts and that’s a gigantic problem because the majority of people have less than $250,000 to invest.”

>>RELATED: Springfield-based EF Hutton America launches products, website plagued

The firm announced a set of financial products last week, including online investment and trading options, although website problems plagued its launch. Daniels said Monday the website is being retooled based on feedback from customers and will be back online in the future.

The company now has about a dozen employees and has said it’s actively looking to fill more than 50 positions, ranging from registered financial investors to website developers and designers to multimedia production positions.

“We are looking to grow in Springfield and operate entirely from Springfield,” Daniels said. “We may have some offices on the West Coast or elsewhere but Springfield is the primary operations center and our national headquarters.”

The company will offer three levels of investment services — a standard service with low fees for self-directed customers; a premium level for investors with portfolios over $250,000 who want guidance from an adviser; and institutional for large investors with complex needs. Beginning in 2017, the company will also begin offering life, health and home insurance for customers, Daniels said.

>>MORE DETAILS: Community ‘sold’ EF Hutton America on move to Springfield

The company will focus on no-commission investing and trading through the company’s website, Daniels said. It will offer most of its services for a low, fixed monthly fee. The company also wants to encourage customers to do all of their investing and trading with the company.

“We don’t want you to have an account with a discount broker and then an investment account with EF Hutton,” Daniels said. “We want you to come to EF Hutton and let EF Hutton service you in a comprehensive way.”

It also plans to train investment advisers who will be based in Springfield and will interact remotely with clients through the company’s website.

The business also plans to make some changes to its downtown headquarters. The property, previously known as the Credit Life Building, is now called EF Hutton Tower and its address has been changed from 1 S. Limestone St. to 1 Main St.

There are no plans to move the building’s existing tenants out of the site, he said. The Springfield News-Sun leases space for its newsroom and sales representatives on the 1oth floor of the tower.

Some tenants may be moved to other locations within the building, Daniels said, and the company is considering adding security staff in the building’s lobby around the clock.

The company also plans to renovate the former State Theater downtown to become a multimedia center.

“EF Hutton, like many other firms we compete with, is in the information business as much as it is a service business,” Daniels said. “So we need to have ways of packaging content and delivering that content to people who can then make their decision.”

It will take time before the firm is running at full speed, Daniels said.

“All of this is all brand new because we just moved to Springfield and there’s obviously going to be some fluctuation and bumps along the way. We’re doing the best we can to bring all this to Springfield.”

About the Author