Market Segmentation (by type)

Potential introducers can be found in the retail, wholesale and institutional segments. We define the retail market potential as covering private banks, banking networks, IFAs and other wealth managers. The wholesale segment would include fund -of -fund managers, insurance companies (for unit linked products), investment banks and securities firms (stockbrokers). The institutional market place features bank and corporate prop desks, pension funds, insurance companies and family offices.

The retail, wholesale and institutional segments have different product requirements. Retail investors seek the latest fashion in fund of funds, single manager funds, funds focused towards specific markets or sectors, top performers and funds packaged through structured products. Investors in the wholesale sector look for innovative and exclusive solutions, single manager funds and structured products. The same demand comes from the institutional segment but here there is the requirement to offer managed accounts as well as conventional off-the-shelf products.

The diversity of the potential client base presents major challenges. No single fund structure can appeal to all segments of the market. There are different perspectives between investors on several issues including investment choice, investment risk, currency exposure, hedging , charges & fees (affecting 3rd party remuneration levels) to name a few. This has partially fuelled the development of multi share class funds which can provide for diverse client requirements.

Importantly, however, this is also why it is vital for a business to understand its present and potential market position. It is not possible to “be all things to all men”.