Just back from a Citywire Pro Buyer conference in NYC. Had the opportunity to sit down with about 12 top asset managers across fixed income, emerging market equity and value investing. Also spent time with 50 top BDs and RIAs. One theme was clear from the conference; Full Coverage is the standard.
What does "Full Coverage" mean? The leading and large firms in the retail investment and wealth business say they have to have full coverage. This means they need to cover each and every product they sell. By cover, they mean due diligence or research. By full, they mean each and every product.
Firms need to put product on their platform through a conscience opt-in action, not a passive opt-out option. Screening out leveraged ETFs or funds is not sufficient; BDs need a process to decide which products should be on their product shelf. Now the decision is how, insource or outsource or a hybrid. Most firms are choosing a hybrid approach. Too many products to go it alone, but still want to maintain some control and differentiation where it counts. Good thing you have options.