Mutual fund shareholders have seen strong investment gains in recent times; however it is the shareholders of the actual fund companies who should be celebrating, as they are the ones who have really profited, according to MarketWatch.
The stocks of publicly traded asset managers are the hot picks right now, as they are the among the market's best performers.
Companies like
Investors have enthusiastically reacted to deals like the
Steven Pierson, head of investment banking at
However, Pierson says investment management firms face ongoing challenges: "All firms, both large and small, face challenges selling product unless they can differentiate themselves with performance and a stellar sales force or real innovation that will attract distributors," Pierson said. "Performance is absolutely key. Good performance will always find dollars flowing into the product. But with as many product options as there are, having a terrific brand, distribution force and wholesaling force is just as important."