FundForum International 2016 Crossborder Distribution Germany Distribution Models what models work best for which distribution channel introduction to the Expert Panel with slides June 7, 2016 Berlin, Germany Georg Redlbacher
Distribution Channels Banks Insurance Co s Independents B 2 C Institutionals Retail FoFs FoFs Investment account Pension Funds FoFs Unit Linked IFA inv acct Broker Pools Fin Tech inv acct Consultants Private Banking Capital Wealth Manager Corporates 2
Different Clusters by behavior Banks Insurance Co s Independents B 2 C Institutionals Retail FoFs FoFs Investment account Pension Funds FoFs Unit Linked IFA inv acct Broker Pools Fin Tech inv acct Consultants Private Banking Capital Wealth Manager Corporates FoFs Advice Execution only Institutional 3
Marketing Channels 4 Ps Product Product: Brand, Packaging Brand / Packaging (ie UCIT) Price: mgt fee / perf fee / regulatory (RDR) / listing / trailer fee / diff share classes Price Pricing (mgt fee, perf fee, trail / RDR, etc) Positioning Promotion PR, Advertising let s call it VISIBILITY Visibility Place Distribution, Channels, Logistics let s call it ACCESS Access 4
Hypothesis: Priorities of Marketing Channels FoFs Advice Execution Only Institutional Positioning Visibility Access Visibility Access Positioning Positioning 5
Access Metzler Fund Xchange 6
Access Metzler Fund Xchange 7
Visibility 8
Holger Sepp, Member of the Management Board, Germany, CACEIS Holger Sepp is in charge of strategic business development, client relationship management, product management and communications in Germany. Prior to joining CACEIS, Sepp was with Sal. Oppenheim from 2006 to 2010 where he was COO/CFO of the Oppenheim KAG, and with DekaBank from 2000 to 2005 where was COO/CFO of Deka Investment GmbH. Sepp started his career as management consultant in the financial services industry in 1993. Daniel Haefele, CEO, ACOLIN FUND SERVICES AG Daniel Häfele, CEO of ACOLIN Fund Services AG, has over 30 years' banking experience in different management positions. He started his carrier after his bank apprenticeship as a Eurobond trader at Credit Suisse. In 1993 he founded the first purely fund-based independent asset management company FONDVEST. Three years later he created Switzerland s leading fund platform FONDCENTER AG, which he headed as CEO and sold in a trade sale to UBS in late 2001. As CEO and founder of ACOLIN Fund Services AG, Daniel now heads the leading independent cross-border service provider for management companies and providers of collective investments headquartered in Zurich. Alexandra von Kalnein, Director, European, HYDE PARK Alexandra von Kalnein has been working in the asset management industry for over twenty years covering institutional clients in Germany, Austria, France and Switzerland. She has worked for Dresdner Bank Paris, JP Morgan IM, Deutsche AM, AXA IM and MM Warburg & CO. She has extensive experience in the marketing and sales of equities, fixed income, alternatives and real estate funds. Alexandra studied languages and business at the University of Munich and completed an Executive MBA program at the Florida International University. Alexander Laurich, Head of Global Distribution Services, IPCONCEPT (Luxemburg S.A.) Alexander is Senior Distribution Manager at IPConcept (Luxemburg) S.A. where he has been since July 2007. Prior to this he was Product Manager Automotive at DaimlerChrysler Bank (today Mercedes-Benz Bank). Georg Redlbacher, Founding Partner, MBMs Georg is Managing Partner at MBMs, a third-party marketer based in Luxembourg. He pioneered third-party marketing when co-founding UVS, the distribution subsidiary of Universal Investment. Prior to that he was responsible for European fund distribution at AXA IM as Global Head of Retail Distribution and at Dresdner Bank s Asset Management Division as Head of Global Business Development and Head of European Sales. 9
Coexisting Fund Processing Models Coexisting fund processing models (CSD Model and Transfer Agent Model) 10
Management company Custodian bank Registered shares Clearing houses Bearer shares Institutionals Fund platforms / banks Brokerage pools Liability umbrellas Institutionals Private bank IFA IFA IFA Anteile Retail customer Retail customer Retail customer Retail customer Retail customer - - - - - - - Distribution agreements and trailer fees 11
Fund Market Germany Crunched Numbers EUR 861 bn - 86 bn real estate funds EUR 775 bn 10 %, ca EUR 80 bn FoF Publikumsfonds EUR 861 bn Spezialfonds EUR 1.380 bn outsourced EUR 460 bn 73% market share of AGI, DeAM, Deka, Union Quelle: BVI, IP Concept 12
Fund Market Germany YTD (March) Flows EUR 1 bn 2 bn R/E fund inflow EUR - 1 bn. outflow (net)! outsourced ca EUR 9 bn Publikumsfonds EUR 1 bn Spezialfonds EUR 27 bn Largest net inflow EUR 2 bn Balanced / Multi Asset Funds Quelle: BVI, IP Concept 13
Distribution is only one part of a Fund s Value Chain Product Expertise Investment Process/Alpha Generation Asset Manager Fund Structure Administration of Assets Management Company (KVG) Administration Valuation/Fiduciary Management Custodian Marketing, PR Capital Raising,RM Distribution Process Network Manager/ PR Consultant 3 rd Party Marketer Hyde Park Investment 14
Bringing It Together.. Access (not Distribution), Visibility, Positioning Structural Differences Size & Outlook Different Models Institutional advise Spezialfonds and White Label UCIT into Spezialfonds or MasterKVG Wholesale (UCIT fund range) 15