Who says outsiders can't fit in?
A new report from mutual fund research firm Strategic Insight offers non-U.S. asset managers insights designed to help them enter the U.S. market and succeed.
The report, authored by research analyst Bridget Bearden, uses data from managers who have entered the U.S. mutual fund market in the last half decade to sum up the mutual fund, sub-advisory and institutional markets.
Findings include the fact that, since 2007, more than 300 managers have entered the mutual fund market. Firms such as DoubleLine Capital, International Value Advisors, AQR and ETF Securities USA — which offer investors non-traditional strategies — have raised over $100 billion in mutual fund assets as of October.
Mutual fund product innovation has been "extremely robust" as post-crisis investors seek global and balanced investments with lower risk. International equity beats out all other mutual funds — except ETFs and index funds — for most product launches, with nearly 500 new funds since January 2009.
Prospective entrants to the U.S. market would do well to determine a solid distribution strategy and build relationships with key local experts — including legal counsel, key distributors, service providers, and other managers — to ensure the success of a new mutual fund launch, the report advises. Nearly three-fourths of international sub-advised mandates are managed by advisors with U.S.-based parents.