1. Assessing the Product Development Landscape
October 10, 2017

2. Assets: Institutional vs. Retail
US Retail
$20T
Sources: eVestment, Morningstar, FUSE

3. “Retail” Assets by Decision Maker
Shift to centralized accelerated by 2008
Market Crash and Shift to Advisory Platforms
Source: FUSE

4. Mutual Fund Industry Overview
Assets $13.7T (Aug ’17)
Net Sales ($ bil)
Sources: FUSE, Morningstar

5. Industry Net Sales Trends
Sources: FUSE, Morningstar

6. Smart Beta products have proliferated
Sources: FUSE, Morningstar

7. SMA Growth: Traditional vs. Model Delivery
AUM $B
Sources: FUSE, Money Management Institute

8. Market Demands of Active Managers
Consistent & Repeatable Process
Sustained Alpha*
Demonstrable Risk Management
“Competitive” Fees
Stability (across the entire organization)
Impeccable Service & Support (personalized)
Impactful Thought Leadership
Source: FUSE

9. Challenges & Concerns Getting New Funds to Scale
Beta, Strategic Beta, Smart Beta, Factor-based Investing
Access to Advisors…Future of Wholesaling
DOL / Fiduciary Rule and commissionable products
Revenue Sharing & Additional Educational Charges
Paring of Distributor Approved Lists
Selling Product or Positioning in the Solution
Role of Professional Buyers (includes home office model builders, 3rd party models, TAMPs, investment consultants, Sub-Advisor selectors, Retirement Plan platforms, Large RIAs and Advisor Teams (PBIG, Greystone, etc.)
Pressure on Profit Margins
Source: FUSE