Five Interesting Questions About Selling Roles, Compensation and the Future of Distribution

Posted by Jason Brown on Mon, Jun 04, 2018

Last week I had the pleasure of speaking at the newly renamed Investment Management Education Alliance (formerly the Mutual Fund Education Alliance) Distribution Summit. The hardest question I faced all day was one that I had to ask myself: How will I make it to New York during a weather apocalypse? But that was by no means the most interesting question I faced. Here are five thought-provoking questions that came up during our discussion of selling roles, compensation and the “future” of distribution:


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The Mobius Test: What Will It Take for New Products to Succeed?

Posted by Rubesh Jacobs on Thu, Apr 12, 2018

Legendary funds manager Mark Mobius recently announced that he will be forming new environmental, social and governance (ESG) funds, investing in emerging and frontier markets. The Mobius name plus emerging markets equity and ESG sounds like a perfect recipe for a successful new fund family, but even this dream combination has to execute a perfect fund launch to get there.


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Build or Buy? Assessing Distribution Options for Alternative Funds

Posted by Rubesh Jacobs on Tue, Mar 27, 2018

The $61.3 billion multialternative funds category is a rapidly expanding market, growing a staggering seven times larger over the past 10 years. The Cerulli U.S. Intermediary Distribution 2017 report pegs the alternatives category with three percent of the nearly $18 trillion of advisor-sold assets in 2016,and most of those assets are sitting in the portfolios of high net worth investors with $2 million in investable assets or more, advised by registered investment advisors (RIAs). In an effort to grow, firms such as Apollo, Blackstone, Carlyle and others that initially brought their capabilities to institutions are looking for efficient ways of getting RIAs to invest in their products. The firms have built up their presence in the market for non-traded business development companies, real estate investment trusts, closed-end funds and interval funds over the past few years through a mix of joint ventures, acquisitions, subadvisory mandates and building their own sales apparatus.


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For Fund Launches, Slow and Steady Doesn't Win the Race

Posted by Jason Brown on Mon, Mar 05, 2018

My colleague Brian Keating made a great observation in a recent blog about the importance of optimizing the product launch strategy of new mutual funds and ETFs. Using examples from some specific fund launches, Brian observed that funds that reach peak market share faster can generate millions more in revenue than slower-launching but otherwise comparable funds.


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What Asset Managers Can Learn From Pharma About Product Launches

Posted by Brian Keating on Mon, Feb 26, 2018

How quickly an ETF, mutual fund or other investment vehicle reaches peak market share can have a massive impact on a company’s bottom line. In fact, according to ZS’s analysis of mutual fund launches between 2002 and 2012, reaching peak market share in 24 months instead of 36 could generate an additional $5 million in revenue for the average new fund, and up to $50 million for some larger funds in the first 36 months alone. But one question remains: How can we accelerate growth?


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