In the dynamic world of asset management, distribution teams play a pivotal role in bridging the gap between investment products and financial advisors. These teams, composed of external and internal sales professionals, are tasked with distributing proprietary investment products to financial advisors, differentiating their offerings from competitors, and answering intricate product-related queries. However, with the increasing popularity of Alternative Investments (Alts), many firms find themselves navigating uncharted waters. Traditionally focused on mutual funds and ETFs, these sales teams often lack the specialized knowledge required to effectively sell and support Alts. This is where Helix can make a significant impact.
Understanding the Distribution Team’s Challenges
- Adapting to a New Product Landscape: Many large asset management firms are recent entrants to the Alts space. Having historically concentrated on long-only equity and fixed income strategies, their sales teams are typically generalists and well-trained on how to advise financial professionals in the long-only space. A lack of familiarity with Alts poses a challenge, as these products require a different sales approach and differentiated knowledge base.
- Educational Needs: Sales teams need extensive education on both the product and the unique asset classes. This includes understanding the nuances of private equity, venture capital, hedge funds, and other non-public investment strategies. Without this knowledge, it becomes difficult to convincingly communicate the benefits and unique features of these products to financial advisors.
- Internal Support Structures: While some larger firms are building out dedicated Alts specialist roles, many distributors rely on internal Alts product specialists to support their external sales teams who are generalists. These internal Alts specialists are crucial for providing detailed answers to product-specific questions and helping salespeople navigate complex client inquiries.
Helix: A Comprehensive Solution for Distribution Teams
Helix brings a suite of benefits designed to address these challenges, enhancing the capabilities of distribution teams and driving better outcomes for asset managers and their clients.- Asset Class-Level Knowledge Base: Helix is an easy-to-use tool providing answers to a variety of complex questions about Alternative Investment asset classes, historical performance of Alts relative to public markets, the benefits of including Alts in a portfolio, and detailed information about various product structures. This access to information on demand ensures that sales teams will better understand the intricacies of different asset classes, enabling them to speak confidently about the benefits and risks associated with each product.
- Product Information and Peer Comparisons: In addition to the asset class level support, Helix provides detailed product information and comparative analyses. These resources allow sales teams to effectively differentiate their products from competitors, highlighting unique selling points and performance metrics.
- Improved Advisor Adoption: By equipping sales teams with the knowledge and tools they need, Helix helps improve advisor adoption of Alts. Well-informed salespeople can build stronger relationships with financial advisors, fostering trust and driving product uptake.
- Increased Sales and AUM Growth: Ultimately, better education and support translate into increased sales and assets under management (AUM). With Helix, distribution teams can approach sales meetings with confidence, answer detailed questions on the spot, and effectively position their products in a competitive market.
Overcoming Distribution Team Challenges with Helix
- Lack of Understanding of Private Markets: Helix addresses the fundamental issue of knowledge gaps. Sales teams gain a deep understanding of private markets – from the basic principles to advanced investment strategies – to help drive greater adoption of Alternative Investment solutions.
- Comparing and Contrasting Products: Helix’s fund peer comparisons tools enable sales teams to draw clear distinctions between their products and those of competitors. This comparative analysis is crucial for demonstrating the unique advantages of proprietary products during sales meetings.
- Answering Detailed Questions: Helix provides 24/7 support and access to a wealth of information, allowing sales teams to answer detailed product and asset class questions with ease. This support reduces reliance on internal wholesalers and the in-house due diligence team, resulting in cost savings and improved efficiency.