The strict regulations, varying according to country and distribution channel, as well as the complex, time-consuming process of setting up a new fund have added to rising costs and greater efficiency is certainly called for. While searching for alternatives, even institutions that have so far managed without their own fund are starting to limit the number of third-party funds on offer. In addition, small and medium banks are realigning their portfolio to include fewer products and cooperation partners than in previous years.
Shift towards long-term white labelling partners
The alternative lies in white labelling solutions which include fund infrastructure and services provided by an asset management specialist with a proven track record and commitment to the business. You can offer your customers state-of-the-art fund products and services under your own brand with less effort and at a lower cost. The first to profit from this made-to-measure arrangement are your investors. They still enjoy flexible and personal customer service – customer interaction and distribution are generally not part of the outsourcing package and remain in-house – while also benefitting from the fund management expertise of a reputable financial institution.
The rationale is compelling and hard to argue with. But asset management is also a matter of trust, and building a long-term strategic relationship with a responsible white labelling partner might well prove the key to your success. In this respect, the role of the white label provider can be compared to that of a general coordinator who acts as main contractor, supervises all subcontractors, takes care of the regulatory requirements and the accounting duties as well as ensures the project management along the life cycle of your fund solution.
Suppliers of turnkey white label solutions who commit themselves to the “one-stop shop” concept generally offer a wide range of services for a variety of investment products. The fund structures are adjusted to the jurisdiction of the countries of domicile as well as the target markets. In addition to the regulatory fine-tuning for each country in which the fund is to be approved for distribution, this includes lean fund management and administration together with trading and the provision of marketing and sales tools.