RETHINKING DISTRIBUTION

from idea generation to distribution and ensuring these are repeatable and reliable will allow asset managers to realise revenues faster, increasemarket share and enhance brand image. An integrated cross departmental team built up of research, engineering, legal, marketing and sales experts would spur innovation and ensure all obstacles of product time to market are recognised and addressed at an early stage. Choice of distributors where funds are complementary products Distributors within the asset management industry prefer to offer complete product lines to cater to the various needs of their investors and minimise the number of asset managers that they have to deal with. Within such a scenario it will be crucial for asset managers to choose distributors where the

fund complements the existing product line of the distributor. In addition to innovative products this can be achieved through a close relationship to the distributor allowing for a clear understanding of the distributors’ needs, constraints and targeted client segment. Tailored product development for and white label offering to distributors could also enhance the relationship and prove attractive for product placement.

Implications for the industry and regulators

A first step towards a level playing field between various substitute products is set to materialise in short with the introduction of the PRIPs regulation. This will allow among others for a comparability of information and specificities of various products to the investor. However, the industry should endeavour to achieve further level playing fields in such areas as tax to ensure a fair competition between competing products to mutual funds.

45