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The days of investment managers defining themselves as regulated fund managers, private fund managers or separate account managers are gone. Many managers are beginning to offer their strategies in new ways in response to today's hyper-competitive landscape and investor-empowered marketplace. Packaging strategies in '40 Act mutual funds, collective investment trusts (CITs), limited partnerships or other vehicles can provide opportunities to fully capitalize on the market and help managers diversify their underlying assets, investor bases and revenue streams, while building their brand in new markets.
According to a recent KPMG report ("The cost of compliance"), 13% of global asset managers said they were considering opening a '40 Act fund, most of whom expect to have their product in the market within the next three years. If you are one of those managers, you will need to take the following marketplace challenges into consideration in order to launch a successful registered fund:
The Ideal Investor. You need to ask yourself, "Who is my ideal investor?" Do you want an institutional investor base? Or a retail investor base to diversify revenue sources? The answer to this question will affect every other decision you make. More so, each underlying market segment has its own nuances and specific rules of engagement. The buying criteria and the ease of penetrating those...