Transcript Simfund Global Quick Start Guide Simfund Global is a

The Seven Secrets of
Distribution
November 2010
Daniel Enskat
Head of Global Consulting
Distributor Key Themes
Product
Marketing/ Information
Trends
Client Service
Be focused, don’t try to be a
supermarket and satisfy
everyone
Are you a household name in
your top asset classes/
categories?—analysts hedge
their bets
Investment management,
unfortunately, is the least
important in the equation
Consistency and
“gentlemanly” way of working
with distributors
Niche and cookie cutter
products work well, easy to
explain, back to basics
Customer events are nice,
but not essential (often not
attended)
“Annus horribilis”: Wealth
managers change processes
Different distributors need
different approaches
(sophisticated vs. local)
Products: A little more sexy, a
little more aggressive (but still
cookie-cutter)
Information is a commodity,
everyone can do it, but not
everyone does it well
Private banking will mostly
grow outside of domestic
markets
Local language research
around themes, broad-based
support
Increased client demand for
transparency, simpler
products
Intermediaries love a good
story
Lost in translation: asset
managers don’t understand
end client needs/ knowledge
Two camps of asset
managers when it comes to
responding throughout the
crisis
Back to guided architecture,
fewer managers, fewer
products
Help the analysts do their job:
Bring ideas to advisers
(practice management)
In addition to a quality
products, campaigns play a
key role
Companies that focus on
operational excellence are
likely to succeed
Core asset classes/
categories almost impossible
to penetrate
More independent thought
and research instead of
factorial updates
Growth opportunities in new
clients segments and
geographies
Service levels matter
enormously
UCITS III/ Newcits is a hot
topic, but limited cash flows
(for now); naïve approach of
hedge funds
Fund analysts rely more on
industry aggregators and
local sites
Few big winners; some firms
blacklisted for the next few
years
Senior commitment and
communication
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Global Mutual Fund Flows by Region, Asset Class
In US$ Billion
1,600
5-Year (2005-2009)
2005-2008
1,000
1,000
2009-1H’2010
1,400
800
800
600
600
600
400
Other
400
Other
400
Bond
200
Mixed
Bond
200
Mixed
Equity
0
Equity
0
1,200
1,000
800
200
0
Asia
Asia
Europe
-200
US
Europe
-200
Asia
Europe
-200
Source: Strategic Insight Simfund GL, MF
Bond
Mixed
Equity
US
Source: Strategic Insight Simfund GL, MF
Other
Source: Strategic Insight Simfund GL, MF
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US
Distribution Channels by Market
Distribution Channels – Asia
Distribution Channel Breakout in Asia by Market
100%
80%
60%
40%
20%
0%
Japan
Bank
China*
Korea
India
Securities Firm
Hong Kong
Insurance
Taiwan
IFAs
Singapore
Direct
*Please note: Insurance companies are not authorized to sell mutual funds in China, and currently there are no
IFAs available to Chinese retail investors.
*Please note: insurance companies are not yet authorized to sell mutual funds in China, and currently there are no IFAs available to Chinese
Source:retail
Strategic
Insight estimates, Asian Industry Associations
investors.
Source: Strategic Insight estimates, Asian Industry Associations
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Distribution Channels by Market
Distribution Channels – Europe
Distribution Channel Brea kout in Europe by Market
100%
80%
60%
40%
20%
0%
Italy
Retail bank
France
Private bank
UK
IFA
Germany
Direct
Spain
Fund of funds
Switzerland
Nordics
Insurance
Other*
* For the Nordics, this category mainly encompasses pensions/ investment wrappers
Source: Strategic Insight estimates, European Industry Associations
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Global Distribution Opportunity Matrix
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Top Selling Non-US Long-Term Funds
Highest Cash Flow Non-US Long-term Funds YTD 8-10
In US$ Billion
Net Flows Historically, Ranked by YTD August 2010 (In US$
Billion)
Net Flows
Portfolio
Templeton Global Bond
Carmignac Patrimoine
PIMCO GIS Total Return Bd
Nomura Global High Yield Bond F(Envmt Crny)
Pictet-Emerging Local Currency Debt
Category
Bond Global
Mixed Balanced Flex
Bond USD
Bond High Yield
Bond Emg Mkts
Templeton Global Total Return
AllianceBernstein-Global High Yield
DaiwaSB Short Term AU Bond OP
Fidelity US REIT Fund
Carmignac Securite
Standard Life Inv Glo Abs Ret Strategies
Daiwa Brazil Bond Open
MitsubishiUFJ Emerging Country Bond F
SMAM SMBC Nikko New World Bond F(BRL)
AXA IM FIIS US Short Duration High Yield
Julius Baer BF Absolute Return
PIMCO GIS Global Inv Grd Crdt
Templeton Asian Growth
Fidelity Funds - US High Yield
Fonditalia Core 1
Bond Global
Bond High Yield
Bond Asia Pacific
Real Estate
Bond Europe
Absolute Return
Bond Emg Mkts
Bond Emg Mkts
Bond Emg Mkts
Bond High Yield
Absolute Return
Bond Global
Equity Asia Pacific
Bond High Yield
Mixed Conservative
Total above
Source: Strategic Insight Simfund GL
*Combines various currency linked versions of the fund
Note: excludes internal fund of funds, with exception of Japan
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YTD
13.9
10.9
8.3
8.0
6.2
6.1
4.6
4.1
4.1
4.0
4.0
3.6
3.4
2.9
2.9
2.8
2.7
2.7
2.6
2.5
2009
5.2
14.2
5.3
2008
-0.1
3.3
-0.4
2007
3.2
-0.2
0.1
1.2
-0.6
0.7
1.4
4.8
2.1
0.7
3.7
1.8
3.6
1.9
3.0
0.3
1.4
2.8
2.0
1.2
1.1
-0.2
-2.1
1.0
0.0
0.1
1.7
0.0
1.9
1.6
-0.4
0.0
0.2
0.0
-1.8
1.1
-2.1
-0.2
0.1
0.5
1.3
0.1
1.8
-0.1
81.9
59.4
-0.6
11.1
Fund Selection Units Post-Crisis
More
Concentration
More
Complexity
Fund Selection
Units
More Power
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The Next Five Years
Global AUM Market Share
60%
60%
US
Europe + UCITS to Non-European Investors
40%
40%
Europe
Asia
20%
20%
Middle East
Latin-America
0%
0%
2005
2006
2007
2008
2009
2010
Source: Strategic Insight Simfund GL
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2011
2012
2013
2014
2015
The Next Five Years
Global AUM Market Share
60%
60%
1940 Act
40%
40%
Local
20%
20%
UCITS Local
UCITS Cross-Border
0%
0%
2005
2006
2007
2008
2009
2010
Source: Strategic Insight Simfund GL, MF
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2011
2012
2013
2014
2015
Challenges and Investment Dichotomies
Industry Key Challenges
•
•
•
•
•
•
•
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Investment Dichotomies
•
•
•
•
Turn speculators into investors
Pensions
Cumbersome sales processes
Emerging Markets
Head office centricity
Brand, staff, language
The long-term view
Local market perception
•
•
•
•
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US vs. global
Developed vs. Emerging
Local vs. Offshore
Investment Themes vs.
Solutions
Active vs. Passive
Relative vs. Absolute Returns
Fee-based vs. Commissionbased
Traditional vs. Alternative
Strategic Insight
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www.SimFundFiling.com
Contact the Strategic Insight Global team:
+1.212.217.6885 [email protected]
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