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Money
managers or program sponsors considering this niche
business, need an in-depth understanding of separate
accounts, the marketplace and opportunity so that they
can determine whether to enter the market. The separate
account business can dramatically change a firm. Once
fully understood, some will welcome those changes, others
will not.
Just
one example of the perspective, understanding and guidance
that MAP provides, is helping new entrants to the separately
managed account business understand how the business
economics of this "scale" business will impact
their firm.
Money
Management Firms considering the separate account
market must understand business economics greatly differ
based on the strategic and tactical decisions that are
reached. In other words, it isnt the economics
of the business, but rather the economics for the particular
firm, based on strategic and tactical decisions. Distribution
channels chosen, resources committed (administrative,
sales, marketing, trading, systems), and portfolio management
approaches are just a few of the decisions that will
have an enormous impact on the economics for a particular
firm.
Program
Sponsors (broker dealers, insurance companies, platform
providers, banks, and others) considering entering this
highly competitive and increasingly crowded market,
can greatly benefit from the intelligence, competitive
perspective, and practical experience that MAP will
provide. Many program sponsors have been in the business
for more than ten years. What can be learned from their
experiences? Can a new entrant really compete when the
five largest sponsors control over 70% of the assets
in the market. We strongly believe the answer is "yes."
Whether
you are a money management firm, or a firm who would
like to offer managed accounts, MAP will help you evaluate
the many different approaches for achieving success,
and help you develop the most realistic asset goals
and profitability scenarios, based on those critical
choices that are made.
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