Over the past three years, the top strategic initiative among Product Strategy & Management teams has consistently expanded their range of investment vehicles and capabilities. Our recent survey revealed firms are achieving expansion within two areas where we get many questions: alternatives and active ETFs.
Alternatives
- Product Strategy & Management teams believe interval funds have the most potential to raise assets in both the short and long term of any alternative/private markets structure, and are the wrapper they would likely use to launch new alternative products.
- Out of any vehicle listed, interval funds saw the largest year-over-year increase in the number of firms offering.
- Private credit is the highest priority asset class for new product launches among respondents. Many believe private credit strategies will be their most in-demand product in the next 12-18 months.
- A common top business priority for Product Strategy & Management teams is to build their alternatives in the private wealth space, while many cited education/understanding of illiquidity in the products as the major hurdle to adoption.
Active ETFs
- All responding Product Strategy & Management teams indicated plans to offer active ETFs and/or launch new Active ETFs by the end of 2025, with all firms planning to expand their lineups in the calendar year.
- Active ETFs are the highest priority vehicle for new product launches among the respondents.
- Bringing important/well-regarded strategies in other wrappers into the ETF vehicle is the number one factor driving ETF product strategies among the respondents.
- A common top business priority for Product Strategy & Management teams is to continue to expand their pipelines of active ETFs.
A key throughline in our research is that bringing well-regarded, scalable strategies to the vehicle(s) that best meet the evolving needs of platforms, advisors and investors is increasingly important, and the most efficient and common method to expand a firm鈥檚 vehicle and capability offering.
To learn more about the product and distribution trends among asset managers and financial advisors, learn more about 51黑料网's Distribution Solutions team.
