First to market? Three questions for your fund distribution services partner
March 7, 2023 | UMB
Asset managers seeking to be first-to-market with an investment strategy or product wrapper should develop a distribution plan as they develop the product itself. Understanding the current marketplace, onboarding requirements and platform fee economics is critical to the long-term success of your product. Due to the complex nature of distribution relationships and the many considerations that go into a successful product launch, we often consult with asset managers well ahead of any SEC filings, the drafting of a prospectus or any compliance reviews.
This upfront process allows managers to gain valuable insights from their potential distributions services partner and, when the time comes, to move faster and with greater assurance. Unfortunately, we have heard far too many times of asset managers going to market without the proper share class or fee structure to support their distribution efforts. These types of roadblocks or delays can be reduced by collaboration with an effective distribution partner in the early stages of product development.
