Did you know “that although new fund launches account for 69% of sales, only 8% achieve real AUM success, only 21% achieve partial success and 71% fail?” (Source: Fund Radar, Jan. 2015).
Preparation is always a must when it comes to distribution. If the prerequisites are not in place the risk of failing is even larger. As a minimum the following must be in place:
- A well-defined investment philosophy, easy to communicate with clear USP’s to all investor types;
- An appropriate set-up that fits client needs, i.e. suitable vehicle, appropriate share classes, tax reporting, client reporting, right service providers, etc.;
- Good corporate governance charter with procedures and policies in place;
- A dedicated Sales and Marketing team with local market knowledge, a clear distribution strategy supported by a proper CRM solution.
Obviously, a brand has more success if built around attractive performance results.
Add that branding must be defined according to the selected distribution channels. That gives rise to a number of questions:
- Are you willing to spend money on branding?
- Do you have the necessary resources?
- Do you have the right legal set up for the product(s)?
- Do you have the proper Service Providers in place?
These are only few questions you need to consider before starting distributing.
We offer you to carry out a client specific strategic analysis starting with an in-depth analysis of your current set-up and needs. Then you will receive our proposal for a distribution strategy with different alternatives. If required, we can also assist you in implementing the chosen distribution strategy.