Broker-dealers continue to find opportunities to diversify their product offerings - most recently through the growing retail alternatives industry. With alternatives making up 15% of global AUM1, many firms run into operational challenges. Alternative products are relatively new to retail third-party distribution and lack automation, have manual processes/controls and are generally inefficient. Alternatives pricing, confirms and money movement practices create complexities with Broker-Dealers as these often differ from the other retail products they offer. Additionally, the unique and complex client experience often leads to much higher Not In Good Order rates with a diminished advisor experience.
Despite these challenges, alternatives continue to grow to meet client demand. Retail asset managers are exploring alternative fund structures and alternative asset managers are exploring retail distribution—new products are registered weekly and growing. What if there was a way to simplify operations? Rather than hiring a large number of new employees to support the operational requirements of these securities, firms could partner with a provider that can help achieve the level of automation and efficiency needed to support clients through advanced technology and service offerings. The right provider can help firms grow their business while providing an efficient and effective operational model.
SS&C has cultivated a team with alternatives experience to help our clients in this area. Our goal is that our teams know a firm’s business as well as they do. We have deep conversations with the client to understand their strategies and challenges with getting there. Our integrated solutions work together to solve problems and we start by listening to our clients to learn what they’re looking for. Finally, we collaborate with firms on those potential solutions and deliver on those commitments.
Contact us to learn more about the alternative growth for broker-dealers.
1 Caia Association: January 2024: The Next $20 Trillion in Alternative Investments
https://caia.org/content/january-2024-next-20-trillion-alternative-investments#:~:text=Today%2C%20alternative%20investments%20are%20larger,of%20global%20assets%20under%20management.
