White label funds call for new talent

A trend for white labelling fund management products is set to transform the skill set needed to work in the asset management industry, predicts one consultant.

Amin Rajan, chief executive of research company Create, says a trend for fund management companies and banks to repackage and market funds managed by outside firms - rather than managing funds in-house - is creating a need for a new kind of distribution person who is both marketing and investment savvy.

"Packaging skills are becoming very important," says Rajan. "Marketing is one aspect, but you also need a huge amount of knowledge about the product, about clients' needs, the tax environment and which products will consistently produce returns over a period of time."

Merrill Lynch and Citigroup are among the banks which are ceasing to manage money themselves in favour of repackaging other managers' products, reports Reuters. Similarly, WealthBriefing.com reports today that the recently established firm Tactica Fund Management plans to white label some of Goldman Sachs' investment products.

Rajan says the new trend is being driven by a preference for solid returns. "There is a major development taking place, which is driven by a desire for decent and consistent returns rather than shooting the lights out," he says. "Very few organisations are delivering that, so others are buying their products in and repackaging them to offer specific solutions to meet clients' needs."

Many of the people filling re-packaging roles will be cultivated internally, predicts Rajan. But he says senior fund managers are also likely to be attracted to the area: "I can see this area growing significantly in the years to come, but it is not something new graduates can go into. You need to have been around."