In Asia, the 50/50 split of the annual management charge between the asset manager and the private bank distributor has been moving toward 60/40 in favour of distribution.
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“We need some distributor education because obviously they haven’t grasped our value proposition about being selective and high conviction managers who invest only in quality stocks.” Robert Ruderschmidt, portfolio manager, Overflowing Alpha Asset Management |
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“As one of the few private banks dominating distribution in Asia, we figure why even have a monopoly if you don’t use it when you can.” Louie Zheng, head of discretionary mandates, Global Behemoth Private Bank |
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“Thank you for your request for comment. The compliance team is engaged in pre-holiday deactivation and they have ceased all comment approval for the year. Please re-submit your request sometime in 2017.” Fanny Leung, corporate communications, Absolute Zero Risk Investment Management (AzRIM)
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“As a former economist, I see that alpha appears to have declining marginal utility from the perspective of the fund distributors. Our alpha, however, has been excessive in the context of ongoing exogenous risk and therefore reciprocity is in order when calculating the fee dispersion, which, ceteris paribus, should be geared in our favour.” R. Joseph Iachetta, chief investment officer, Shoot the Lights Out Asset Management |
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“We strongly believe that whatever the two sides agree on is what we would consider a good decision.” Pollyanna Sim, head of marketing in APAC, StraightTalk Fund Management Group |
