Investor Economics Insight September 2019

Mutual Fund Distribution Remains Advice-centric

Of the multiple forces shaping the investment funds industry, changes in distributor practices are, arguably, the strongest factor at play. How advisors use funds, what type of products they demand, and how adequate pricing is to their needs are some of the most important questions product development teams need to address to ensure their funds meet success in the market.

The current issue of Insight looks at the recent growth experience of mutual funds and ETFs in different distribution channels, from the bank’s branches to the intermediated networks and direct conduits. The report delves into the different product structures that are growing the fastest in each channel, whether in commission-based or fee-based accounts—of the discretionary variety and not. The Trendlines article at the end of this report reviews the rapid changes in net flows by asset class into mutual funds and ETFs.