Fund providers in the US are running into a distribution challenge as the lines between retail and institutional business continue to blur, according to the latest issue of The Cerulli Edge – US Edition.
According to Cerulli’s research, while retail investors may benefit from what could be described as situations resembling institutional sales, this is also leading providers to “reassess how their distribution teams are interfacing with those pockets of the market,” said Marina Shtyrkov, analyst.
“To make matters more challenging, broker/dealers are reining in their risk exposure, which makes it more difficult for asset managers to win shelf space at the largest B/Ds.”
This in turn is affecting the ability for wholesalers to demonstrate that they offer sufficient influence in the investment decision process – dis-intermediation. And asset managers are in turn shifting towards “coverage models where they can better serve the largest practice with professional buyer tendencies,” adds Kenton Shirk, director.
Click here to see the full analysis of this change ongoing in the US market: The Cerulli Edge – U.S. Edition