Prism analytics: use case for small cap growth
To maximize your team’s selling efficiency, you need to know who your best buyers are and how to price your product. Ask yourself these 3 questions to ensure you’re pursuing the most profitable opportunities for your US SCG fund and providing the most attractive solution.
Question one:
Which money is moving towards you?
And the buyers have changed – previously, it was Public DB plans; today, your best buyers are Taft-Hartley and Corporate DB
Question two:
Who is winning business?
Use this information (and dig more deeply should you choose to) to refine your selling message to compete against your most likely competition.
Question three:
Who else is winning business?
Fees for actively managed US Small Cap Growth (SCG) funds remain the highest among the various Style and Cap categories in the US equity market. Notably, within the small-cap segment, Growth funds have higher fees compared to both Core and Value funds, and small-cap funds, in general, have higher fees than other fund categories.
More specifically, the median observed post-negotiated fee for actively managed US SCG equity is 80bps. Knowing this, how will you price your fund?
Summary
US actively managed small cap growth equity is currently out of favor, yet there are pockets of buyers to attract assets. Distribution strategies targeted at the right buying clients at the right market price will yield positive results.
The above is just one example of how to use Prism Analytics to fine-tune your distribution strategy. Every Prism Analytics figure is bottom-up calculated from 10,000+ plans: no sampling, no extrapolation. Data can be refined to an exceptional level of granular breakout.
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