Insider perspective on fund distribution
25th January 2024
I have been working in the asset management industry for more than 2 decades, having had the chance to cover various roles in different firms, from Portfolio Management to Consultant as well as Sales & Business Development.
Nevertheless, it was not until I joined Acolin that I realized the complexity behind setting up, launching and efficiently distributing mutual funds to a large set of investors.
The service we provide is a true game changer as, when successfully set up, it allows you to reach new markets, a large number of investors and may significantly increase your AUM and visibility.
But that is what you see on the front line! Behind the scenes there is far more work to be done and quite frankly, often underestimated.
The work required in registering your funds in the markets you are targeting, complying with the local regulations, having your funds visible and available on a network of distributors, efficiently managing the contractual relationship with them, running a thorough compliance with the counterparties you are working with, managing the data, complying with the standard associated for their dissemination, calculating the commission fees, just to mention a few tasks, is not to be underestimated.
In our industry you hear a lot “focus on your strengths”. Here at Acolin I see this in action every day, our clients can leave all the above tasks to us while they can focus on their key value adding activities: performance and investor relations.
But let us be clear: having all the distribution infrastructure set up does not guarantee immediate success. Managing the pipeline of products you want to distribute, the quality of the products (risk/return profile, etc.) and the sales efforts in terms of properly informing the network of investors, remain obviously one of your main duties.
Acolin connects asset managers to opportunities, transforming these into investor relationships and business growth is under their control.
Fund Distribution service platforms have increased their importance in the industry and evolved to provide always better new and innovative services. Some focus on the operational aspects of the business, some others on trading and custodian functions, but there is a general far and foremost need to be accomplished that is market intelligence; who is buying my funds, what are the money flows, how can I better target my clients and prospects, which are the market trends?
As we are all hearing these days, the buzz words are Artificial Intelligence and access to data; gathering information from traditional and non-traditional alternative sources of information and make them available in a useful format will further enhance the efficiency of the distribution network.
We at Acolin are ready for this challenge and are focusing our efforts to continue connecting our clients to opportunities in the best way possible, which includes genuine relationships. Reach out to me and my colleagues for further information.