Asset management – where next?
Crystal gazers see polarisation in the industry
More and more consultants are spending time gazing into the crystal ball and polling asset managers to work out where the industry is heading.
The latest prediction to drop into my mailbox comes from Hymans Robertson, an investment consultant that believes polarisation is going to increase this year, according to its annual survey of UK fund managers. That means bigger firms will get larger, while smaller ones will reduce in numbers.
Asset managers, all change
Musical chairs: Survey shows plans to both fire and hire asset managers
One way or another asset managers are in for a bumpy ride this year as many are likely to be replaced.
At least that’s the scenario according to Mellon Transition Management, part of BNY Mellon Asset Management, which says a record number of global pension funds and endowments are planning to change asset managers as they try to reduce risk.
Passive is the name of the game
Just in case anyone is wondering why BlackRock is trying to snap up Barclays Global Investors, a small reminder dropped into my mailbox today with a preview of research on the exchange traded fund industry, albeit delivered by BGI.
It quotes data from mutual fund consultant Strategic Insight to the effect that net sales of mutual funds were minus $6bn in the first three months of the year compared to net sales of $7.7bn for ETFs, one good reason why the US money manager might be keen to get hold of BGI’s business.
Winners and losers
Europe’s battered fund industry is beginning to look a little less shaky as fund flows pick up in the first three months of the year. This breaks a long run of outflows after the financial crisis broke mid 2007 and then investors hit the panic button following Lehman’s collapse last autumn.
Net inflows reached €22bn as investors moved into money market funds and some of the outpourings from equity and bond funds were staunched, says quarterly research from Efama, the European fund body.
What green shoots?
Green shoots?
The FTSE 100 entered an official bull market last week with a rise of more than 20 per cent from its lows in March, and global equities surged on hopes the worst of the recession is over.
But here’s the curious thing. The majority of independent financial advisers say the green shoots of recovery are nothing more than hot air and recent stock market gains are simply a bear market rally. And so do most of the private investors they advise, according to a survey by 1st- The Exchange, a technology provider for financial services firms.
Firing is not the only answer
revolving doors spinning faster
Many investors react to poor performance from their investment managers with one thought – the firing line.
But that is not always the the way to go, especially in credit crunch conditions where lack of liquidity, forced de-leveraging and government intervention have made it difficult for investment managers to move fast enough to avoid losses, say consultants Watson Wyatt.
FTfm is no longer updated but it remains open as an archive.
FTfm's specialist writing team offer their insights into the global fund management industry.
Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.
Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.
Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.
Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.
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