Product Development category

Spotlight Series: Daniel Enskat, Strategic Insight on the future of the Fund Management Industry

August 20, 2020

Daniel Enskat, Managing Director, STRATEGIC INSIGHT was guest commentator for a panel debate entitled “INNOVATION IN PRE & POST-RETIREMENT PRODUCTS: How can we create products that deliver what they promise? Collaborating and competing towards a new European style 401k lifecycle product with Jervis Smith, Managing Director, Global Head of Client Executive, Global Transaction Services, CITI; Dominique Carrel-Billiard, CEO, AXA INVESTMENT MANAGERS, Andrew  Fisher, CEO, TOWRY LAW and Philippe Marchessaux, CEO, BNP PARIBAS INVESTMENT PARTNERS.

In discussion with the Spotlight Series, he reflects on meta trends with long term influence like the rise of the global middle class.  And the future of the Fund Management industry?  In the face of wars, natural disasters, sub prime crisis etc the Industry maintained 2bn/ day net flows for last 10 years; it is a very robust industry.

Post Under: Product Development

Mum’s the word for simple information for distributors

June 28, 2020

Richard Romer-Lee, Research Director, OBSR speaking at FundForum International 2010

Adrian M Weiss, Citi Global Consumer Group EMEA speaking at FundForum International 2010

An expert panel comprising representatives of four different strands of the distributor base discussed the different needs and demands for open and guided architecture in the distributor manufacturer relationship during the afternoon sessions of the Fund Forum 2010 Distribution Summit. Moderated by Richard Romer-Lee, research director with OBSR, the private bank sector was covered by Philippe Baumann, deputy head of open architecture at Lombard Odier Darier Hentsch & Cie; the consumer bank was represented by Adrian M Weiss, head of investment products and advice at Citi Global Consumer Group Emea; also speaking from the point of view of the private banker was Jean Francois Hautemulle, head of fund selection at Unicredit Private Banking and while the retail sector was represented by Richard Vincent, head of Open Architecture Funds at Skandia Investment Group.

Romer-Lee opened with the view that historically, distribution systems have not served the end investors well, asking the panel how they organised governance. The results varied from Baumann’s reliance on the client relationship and providing the right fund, while Vincent said that he liked to manage expectations, employing a robust process that allowed them to deliver on the promise. Vincent had experienced frustration interacting with fund management firms particularly in instances where they were trying to take a more global view of the world. Generally, only the larger asset managers took a global view. Weiss reported that they preferred the strategic partnership route and felt that some firms did a better job than others in this department. There was a concern that reviewing and updating retail distribution might increase the cost for the investor, which was a concern.

Richard Vincent, Skandia Investment Group speaking at FundForum International 2010

Jean Francois Hautemulle, Unicredit Private Bank, speaking at FundForum 2010

On the issue of customer segmentation, Baumann reported that they had a relatively homogenous client base which was segmented by value with the product selection the same across assets. Weiss found that their products differed depending on risk parameters and Vincent reported that they took an attitudinal view of how sophisticated clients could be. Hautemulle said that they were trying to get clients to be more diversified and Vincent said that products that did well were ones that investors felt that they had an emotional bond with them. Hautemulle said: “A key thing for us is transparency and information from managers. Vincent agreed, posing the ‘mum test’ as in ‘can my mum understand this?’ as a basic level of whether information from fund managers was simple enough.

Post Under: Product Development

Managing success in a volatile market

June 4, 2020

Laurent Ramsey, chief executive officer, Pictet Funds

Laurent Ramsey will be speaking at FundForum International 2010

Laurent Ramsey is CEO of the investment fund division of the Pictet Group. He is responsible for a group that offers over 80 different products, mostly Luxembourg-based, and distributed over 25 countries to three main client groups. These are institutional clients, wholesale fund buyers, (mainly discretionary portfolio managers) and the retail networks.

Ramsey’s role covers product development, product structuring, product management, marketing and distribution. The only part that he is not responsible for is the actual asset management. Ramsey feels that there have been two main challenges over the last two years. “If we go back in time, our first challenge was to cope with the huge risk aversion that came throughout the sub prime crisis” he says. “We had to cope with clients moving out of any type of risky assets and back into cash.”

This Pictet faced by launching a new range of funds. “We launched a sovereign money market fund, covering all the currencies, which allowed us to capture a lot of the outflows in tough market conditions.”

Not only did it slow the outflows of money, Pictet found new clients during the difficult patch. “We could gain new clients because we had managed to launch such a conservative product offering at the time.” Read more »

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