Fund supermarkets are the ideal scenario for boutiques as they offer them a level playing field, with larger counterparts that have bigger marketing budgets.
Cofunds fund manager relations director Russell Lancas-ter said that while boutique firms could not compete with larger players in terms of marketing budget and IFA events, being on a platform opened them up to a wider audience of advisers who may not traditionally see those funds.
“We have some 12,000 RIs on our platform and having your fund on the shelves of a platform gives them the opportunity to look at those funds with an equality that maybe wasn’t there previously,” said Lancaster.
SVM head of retail sales Mark Noble said while the dual promotion with Cofunds and other platforms does help, boutiques should not solely rely on platforms and do need to supplement this presence with their own marketing.
He said: “The platforms help but we do still have to wear out shoe leather and actually go and visit the advisers. That gives me hope as they look at past performance and want to know what is under the bonnet driving it.”