White labeling provides companies (like banks, asset manager, or brokers) with the opportunity to offer under their own name complex or specialized products or services of third parties to their customers. The portfolio of products or services increases without a comparable increase in workforce or technology.
Therefore, it can be considered akin to outsourcing. Few financial companies can of er all kinds of services and products to all their customers. Managed futures are one type of alternative investments and they need experience, workforce, technology, and a certain amount of assets under management to be profitable.
When single requirements cannot be fulfilled, white labeling of products from experienced and successful investment managers can help to of er a broader product range to customers and increase the turnover through fees. The initial investment manager can increase the client base and the assets under management, and thereby the management and potentially incentive fees. For all participants the counter parts risk increases.
Therefore, it can be considered akin to outsourcing. Few financial companies can of er all kinds of services and products to all their customers. Managed futures are one type of alternative investments and they need experience, workforce, technology, and a certain amount of assets under management to be profitable.
When single requirements cannot be fulfilled, white labeling of products from experienced and successful investment managers can help to of er a broader product range to customers and increase the turnover through fees. The initial investment manager can increase the client base and the assets under management, and thereby the management and potentially incentive fees. For all participants the counter parts risk increases.
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| White Label |
