Fund Distribution

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:

  1. A well-defined investment philosophy, easy to communicate with clear USP’s to all investor types;
  2. An appropriate set-up that fits client needs, i.e. suitable vehicle, appropriate share classes, tax reporting, client reporting, right service providers, etc.;
  3. Good corporate governance charter with procedures and policies in place;
  4. 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:

  1. Are you willing to spend money on branding?
  2. Do you have the necessary resources?
  3. Do you have the right legal set up for the product(s)?
  4. 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.