The Markets June 3, 2011

Equity Shifts Lift All Wrap Program Types in Q1

A new report finds that a shift toward equity funds benefited all wrap platform types in the first quarter, but that discretionary “rep-as-portfolio manager” programs enjoyed the fastest growth of all. 
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According to the Q1 2011 edition of Strategic Insight’s National BD Product Strategy & Distribution Trends report series, those discretionary Rep-as-PM wrap platforms, though coming from a relatively small base, have scored an organic growth rate of 36% since the start of 2010.

The report notes that the shifting demand trends toward equity funds in the first quarter of 2011 helped all three wrap platform types – Rep-as-PM, Rep-as-Advisor and Home Office Model – to register their highest growth in several quarters.  However, highlighting the demand differences across platforms, no investment style was able to score among the top-five fastest growers via all three wrap programs.

Additionally, the report’s authors note that a disconnect continues to exist in demand trends between FA-controlled platforms and home office models. “Solution-based” offerings dominated the top-selling funds via Rep-as-Adviser and Rep-as-PM programs, while traditional US equity strategies constituted the top-sellers within Home Office Models.

This report series, from Strategic Insight, an Asset International company, monitors important top-line trends, but also digs deeper to provide actionable insights on how these trends are affecting fund demand across platforms.

More information on the report is available by contacting Dan Weinerman at dweinerman@sionline.com, or at (212) 217-6897.

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