Large Asset Managers
- You are a CEO, CFO and CIO under pressure to deliver higher profits
- You wish to restructure the long tail of non-core Funds that are a distraction – this allows your team to focus on large scalable Funds
- Sterling has the expertise that takes away your headaches
We have taken on a Fund Sponsor role once...
we are ready to do it again
We have
Platform + Infrastructure
- Full FCA Permissions
- Compliance, operations, full back-office setup; ready to take on additional Funds
- Presence on many leading platforms such as Hargreaves, ii,
AJ Bell, Barclays, Aviva among others
Team + Experience
- Team has knowhow and understands the Fund Sponsor role
- In-house experience of seeking a change in Sponsor with the FCA, including prospectus change and refreshing the Fund
- First-hand experience of the complicated mechanics of changing the ACD and seeking shareholder approval
How do you benefit?
Competitive OCF, providing value
Meet Consumer Duty expectations
Challenges facing larger Asset Managers
Current situation
- A long tail of orphan subscale Funds that are not growing; they are a burden to back office and compliance is stretched
- Funds have overlapping strategy
- Organic growth is difficult; fee income is down while Fund Manager and other costs are rising
- Large funds are subsidising small funds (often loss making). This risks Consumer Duty breach to investors in both the small and the large funds
- Value Assessment: "red" Funds damage brand; media spotlight on dog funds dilutes reputation
Action required
- Reduce the number of funds, reduce operational costs and bring in more focus across all teams
- Differentiated products are the need of the hour
- Need to reduce fixed costs; Fund Manager salaries are too high and need to be rebased
- Retain scalable "winners" fitting for a large house
- Disposing small funds ensures investors in larger funds are getting a fair deal (rather than subsidising the smaller funds)
- Sharper focus against larger competitors and ETF providers
- Significant improvement in operating efficiency
- Higher profits available to reward performers
Sterling Solution
An immediate win win
- Our win-win solution benefits all parties
# You, the asset manager
# Your underlying investor - Redundancy costs of Fund Managers could be avoided
- Savings in fund closure costs and process times
Loss-making funds turn into positive income streams
Control levers to protect brand
For large transactions involving multiple Funds,
we would provide additional control levers that would
- Protect your brand and reputation
- Ensure we stay straight and narrow and deliver what we say we will deliver
Our win-win solution would undoubtedly deliver excellent outcomes for clients.
We all want that, don't we?
We all want that, don't we?