When Expanding Your Product Base: Keep it Simple

Investment managers continue to manufacture fee-based products across a variety of separately managed account (SMA) structures, including model-only and dual contract. This product expansion within a specific channel may be a result of general fee compression seen across the industry. Managers faced with lower revenues have sought new opportunities to leverage their expertise by expanding their product base.

Dual contract SMA programs have direct connections between the investment manager and investor. As their name implies, investors sign a contract with both a sponsor and a management firm. This arrangement allows the manager to provide a customized approach to individual accounts, creating greater flexibility with a complementary fee arrangement.

From the investment manager’s perspective, multiple service models within the SMA channel often require separate systems and processes. This increases operational complexity and erodes the benefit of higher revenues. Archer has developed a technology platform and outsourcing services that support all SMA distribution channels. Managers are able to select the services that best fit their needs, simplifying operations, thus enabling them to focus on investment selection and high-touch client service.

See how a total solution combines technology, services, and robust connections to provide the flexibility needed for today’s investment management landscape: The Power of a Complete Ecosystem