Insight June 2010 Monthly Update

The June issue of Insight discusses the battle for fund shelf space in the intermediated advice channels. Collectively, the financial advisor and full-service brokerage channels represent nearly 42,000 advisors and control over half the mutual fund asset base, making them the fund industry’s largest investor gateway. We examine the challenges and opportunities facing independent fund companies, and address the approaches they are using to preserve and grow their business in these two channels. The independent fund companies’ answer to the competitive gauntlet in the intermediated advice channels is to “go big or go home”. Addressing the challenges has required a dynamic,comprehensive,and increasingly resource-intensive game plan, covering such issues as product development, performance, marketing, and sales and advisor support. Our analysis demonstrates that the table-stakes for competing in the intermediated advice channels are high—and rising.