As a distributor, the company collaborates with the investment company to develop a marketing plan for the distribution of the investment fund. Third parties typically collaborate with employee representatives with global distribution networks. They may be responsible for the sale of individual funds and cooperate with brokers to ensure the distribution of funds through electronic brokerage platforms. Understanding each market in Europe, any regulations by country and the applicable distribution channel is key to defining the distribution strategy. Each AIFM should prepare its entry into the European market and adapt its product to the targeted countries of distribution. For foreign leaders, it`s important to rely on trusted partners and expertise to ensure their fund aligns with their marketing plans and overall distribution strategy. The harmonisation of rules applicable to the cross-border distribution of investment funds and the distribution of third parties collaborates with investment companies to sell investment funds. Third-party providers typically have large national and international trading teams to market the investment firm`s investment funds. Distributors also have an extensive distribution network and know-how in the distribution of investment funds. Foreign executives will mainly choose to appoint a management company and focus on the investment management and fund distribution strategy.
Depending on the manager`s strategy, risk-taking and budget, the use of a management company (ManCo) may be considered to provide outsourced services and support operations with functions such as business management, compliance with legislation and risk. Eaton Vance and Vanguard are two investment fund companies that have created distribution units for the sale of investment funds. Eaton Vance Distributors is a distributor of Eaton Vance investment funds. Vanguard Marketing Corporation is the distributor of Vanguard investment funds. The European regulatory landscape is constantly evolving and the implementation of the updated UCITS and Managers Directives is planned by 2021 in order to further harmonise the distribution of investment funds across Europe. Europe is home to a competitive asset management industry, made up of 27 markets with different distribution channels, rules and investor appetite. In some cases, an entity may create its own distribution unit of a third party to coincide with the investment company for the distribution of investment funds. There are also independent distributors with a number of service offerings for investment fund companies.
Generally speaking, European leaders are more regulated when it comes to compliance than their U.S. counterpart, resulting in increased costs and dedicated resources. . . .