Embarking on a marketing effort with the major European financial centers as the initial focus is, however, extremely arduous for new, particularly non-European, groups.

Given appropriate lists of contacts, one-on-one meetings can be arranged relatively straightforwardly, but their effectiveness is dependent on a series ofcriteria beyond the chemistry of the meeting itself.

Press relations, actively undertaken, will serve both to boost familiarity of a fund management group and, moreover, can prove a valuable information source to the group as well as from it.

Over the past few years, the European press has increasingly reacted positively—with certain exceptions—to the derivatives industry as a whole and to managed derivatives in particular. Read more »

Posted: March 17th, 2008 under Uncategorized.
Comments: 1

In Europe, as elsewhere in the world, institutions like when possible either to deal with specialist boutique operations or with operations the same size (or at least with the same standing in their particular industry) as themselves. Thus a middle-sized fund group with, say US$ 10m or US$ 25m under management is going to find itself with a very hard sell indeed. In these circumstances it is important, from a marketing standpoint, to quote all the capital/corporate size available. Thus if the middle-sized fund group is a subsidiary of a larger brokerage or banking operation, the capital worth of the parent should be brought into play.

If no parent company exists, attention should be focused on the specialist characteristics of the fund group and its investment programmes (words like flexibility and innovative are useful here) in an attempt to portray the fund group as a niche business. (This technique is often used by consultancy groups seeking to act for investment management groups.) Read more »

Posted: February 17th, 2008 under Future Fund.
Comments: 4

Embarking on a marketing effort with the major European financial centers as the initial focus is, however, extremely arduous for new, particularly non-European, groups.

Given appropriate lists of contacts, one-on-one meetings can be arranged relatively straightforwardly, but their effectiveness is dependent on a series ofcriteria beyond the chemistry of the meeting itself.

Press relations, actively undertaken, will serve both to boost familiarity of a fund management group and, moreover, can prove a valuable information source to the group as well as from it. Read more »

Posted: February 17th, 2008 under Future Management, Future Trading, Futures Quotes, Managed Futures.
Comments: 2

European Institutions

The preparedness of European institutions to purchase either managed derivatives funds or programmes varies across the continent and is dependent upon a series of factors some of which may be addressed by marketing.

1. The regulatory (and tax) environment;
2. general familiarity with the derivatives and managed derivatives industry;
3. familiarity with the fund management group attempting to sell product;
4. presence and format of a track record (at least for past funds if a new product is offered);
5. money under management within the fund group;
6. technical expertise within the fund group;
7. performance aspirations for the fund or investment programme;
8. quality and content of the explanatory/sales materials;
9. financial considerations such as fees implicit within the fund or programme.

Read more »

Posted: February 16th, 2008 under Foreign Exchange Futures, Future Fund, Futures Trading System, Oil Futures.
Comments: 2

Agents

One marketing consideration that generally affects fund groups attempting international retail sales is a need for agents in various countries.

Making contact with such agents has, in the past, normally been achieved by advertising (often classified) in such publications as The Economist or the International Herald Tribune supported by editorial coverage of a fund group’s ambitions in agents‘ trade magazines (of which there are a growing number).

There are three principal messages that need to be put across. The first, most obviously, is the size of the upfront sales commission and of the so-called ‘trail’ or ‘trailing commission’ (the ongoing income to an agent whose clients stay with the fund). Quite reasonably, fund companies have become uncomfortable with an exclusive focus on upfront commissions since certain groups found themselves being burnt by commission earning money coming into a fund and then, mysteriously, moving on somewhere else.

The second message is support. Agents increasingly respond well to formal training sessions — both about the managed derivatives market in general as well as about the specific product on offer. Supplementing such events, many fund groups also put together specific agents packages which include simplified written explanations of aspects of the derivatives industry and on the historical/academic arguments often used to promote derivatives funds—Portfolio Diversification^,Futures as a Separate Asset Class, Modern Portfolio Theory and so on. Read more »

Posted: February 12th, 2008 under Managed Futures.
Comments: none

In Europe, as elsewhere in the world, institutions like when possible either to deal with specialist boutique operations or with operations the same size (or at least with the same standing in their particular industry) as themselves. Thus a middle-sized fund group with, say US$ 10m or US$ 25m under management is going to find itself with a very hard sell indeed. In these circumstances it is important, from a marketing standpoint, to quote all the capital/corporate size available. Thus if the middle-sized fund group is a subsidiary of a larger brokerage or banking operation, the capital worth of the parent should be brought into play. Read more »

Posted: February 11th, 2008 under Future Fund.
Comments: 4

European Institutions

The preparedness of European institutions to purchase either managed derivatives funds or programmes varies across the continent and is dependent upon a series of factors some of which may be addressed by marketing.

1. The regulatory (and tax) environment;
2. general familiarity with the derivatives and managed derivatives industry;
3. familiarity with the fund management group attempting to sell product;
4. presence and format of a track record (at least for past funds if a new product is offered);
5. money under management within the fund group;
6. technical expertise within the fund group;
7. performance aspirations for the fund or investment programme;
8. quality and content of the explanatory/sales materials;
9. financial considerations such as fees implicit within the fund or programme.

Read more »

Posted: February 11th, 2008 under Managed Futures.
Comments: none

Offshore Futures Funds

If the IML gives its approval, shares in offshore futures funds can be sold in Luxembourg, as long as they comply with domestic marketing rules on consumer protection and canvassing market practices. Approval will only be given if the offshore fund concerned is regulated, in the jurisdiction in which it is established, by a supervisory authority set up by law to ensure the protection of investors.

A private offering of an offshore fund can be made in Luxembourg without registering the fund or seeking a listing in Luxembourg. To qualify as a private placement, there must be no public solicitation or advertising in Luxembourg.

Offers may only be made to a limited number of institutional investors including banks, non-banking financial institutions, brokers, mutual fund agents and professionals engaged in the marketing of mutual funds and authorised as such in Luxembourg. There is no specific limit as to the number of investors to whom such a private placement can be made, although offers should not be made to other funds otherwise the offering will be deemed to be a public offering (that is, to all the investors of the fund). There are no unsolicited calls or similar rules. Read more »

Posted: February 8th, 2008 under Future Fund, Future Investing.
Comments: none

THE GROUP OF THIRTY

The recent report by the Washington-based think-tank, the Group of Thirty, sought to address many of the problems associated with the risk ofover-the-counter derivative products. The Group of Thirty or G30 is a private group made up largely of the senior management of banks from all over the world and academics working in the field of economics.

The current members are:

1. Rt. Hon. Lord Richardson of Duntisbourne KG, honorary chairman
2. Paul Volcker, chairman, Group of Thirty, and chairman of James DWolfensohn Inc.
3. Dr Pedro Aspe, Secretario de Hacienda y Credito Publico Mexico
4. Geoffrey Bell, executive secretary, Group of Thirty, and president of GeoffreyBell & Company

Read more »

Posted: January 26th, 2008 under Future Management, Futures Trading System.
Comments: 4