As investment products get more complex and distribution support becomes more demanding, mutual fund shops and other asset managers are turning more to product specialists to fill gaps in expertise, according to a new report out by Cerulli Associates.

According to the November issue of U.S. Asset Management Edition of The Cerulli Edge, half of asset managers polled said that they will hire a portfolio specialist within the next 12-months.

"Investment products are becoming more complex, which is causing a greater demand for distribution support," stated Pamela DeBolt, senior analyst at Cerulli. "This is putting a lot of pressure on product managers to get everything done."

According to Cerulli, portfolio specialists are generally tasked with providing product expertise to help fill the gap in product coverage. Portfolio specialists typically reside outside of the product group and often report into investment management

"Advisors expect a broader range of support from their wholesalers, which is putting more emphasis on the importance of portfolio specialists. Many specialists travel with wholesalers to meetings in order to provide additional resources and product expertise," DeBolt said.

Cerulli's research shows that asset managers often struggle with how to best organize their product groups within their organizations. Some firms believe product development and product management belong together because they are related. Others believe they should be separate because the roles require different skill sets. Cerulli believes that marketing should be housed under the same organizational umbrella as product to avoid inconsistent messaging.

A full copy of the report can be purchased from Cerulli. 

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