Retail fund distribution in the midst of major changes according to CACEIS and PwC report

In addition to an overview of the current fund distribution arena and its continuous transformation, the thought leadership piece identifies three disrupting factors with which players will have to contend going forward: (1) the latest regulatory agenda, (2) a serious change in the investor base and (3) recent technological developments.

The report highlights the impact of these catalysts on the fund industry value chain and the balance of power between the legacy industry players (i.e. asset managers, institutional investors and distributors) and the industry’s new players. It offers various new strategic actions and value propositions that asset managers and distributors should consider in response.

Four years ago, (June 2011), CACEIS and PwC published the report Rethinking distribution – Creating competitive advantage in a new fund distribution paradigm in which they suggested a strategic reconsideration of distribution practices. Since then, the impact of these disruptions on the industry has intensified and now requires appropriate actions.

“The decision to focus our research paper on retail fund distribution was driven by the changing face of this industry,” said Olivier Carré, Partner, Regulatory & Compliance Advisory Services Leader at PwC Luxembourg. “Opportunities abound for asset management firms and distributors, but they must understand how to make the most of them. New pricing models, strong client-centric solutions, and increasing integration of social, mobile, analytics and cloud, a.k.a. SMAC technologies, will be essential for those who want to succeed in the new fund distribution landscape.”

Joseph Saliba, CACEIS Deputy Chief Executive Officer, stated, “We believe that the insight and recommendations in this report will help asset managers and distributors define strategies that are needed to navigate the challenges before them. Readers will get a glimpse into the world of retail fund distribution with a specific focus on the hurdles distributors and product manufacturers will have to overcome if they want to succeed in this new environment.”