The evolving D2C landscape is shifting the distribution opportunities for asset managers. While they have historically relied on direct platforms for product distribution, new opportunities are emerging with neo-brokers.
These are often all-in-one investment solutions consisting of single active or passive funds or ready-made portfolios like eToro’s newly launched Core portfolios of ETFs. BlackRock, JP Morgan and Vanguard are establishing themselves as leading providers in this space.
Digital banks are also thinking about investment solutions for their clients. Monzo recently launched its own investment service with three funds from BlackRock’s ESG MyMap range, and Chase users can access Nutmeg.
Distribution opportunities for single-strategy active funds have diminished in recent years, with more competition from in-house products, multi-asset and passive. We’re now seeing new opportunities for asset managers among the new breed of D2C services.
Platforum will soon publish UK D2C: Investment Distribution, our annual report looking at how product providers optimise distribution and how guidance influences investment distribution. For more information, please get in touch.