Fund providers must be aware of the importance of structure for asset managers to deliver their respective expertise. When choosing a structure, review of the operational challenges and benefits for all the constituents may be an overlooked component in the process, particularly with the growth and advent of ETFs. There are specific operational nuances that help compound the thinking on why structure definitively matters for these potential fund providers.In today's investing landscape, anyone who holds out as a manager of assets has a variety of ways to distribute how they deliver that expertise to the market. From newsletters, to 40 Act funds, to 33/34 Act funds, to hedge funds, to separate accounts - there are a myriad of vehicles to choose from, and that selection matters more today than it has in years passed.
It matters more now because of the influx in options and the way information is consumed and how new ideas are adopted: via the internet, the 24/7 news cycle and the different social media channels with tools like Twitter that have changed the game. Each structure comes with different regulatory inputs along with its advantages and disadvantages.