Mood of the month

The European fund buyer’s mood index has plunged to 54.2 points since end of the August (57.6 pt). This downward trend has continued to be driven by Italian fund buyers as a result of the local political situation: only 25% of them say they are optimistic for the next 12 months. However, the flash crash on the US stock markets and the impasse of the Brexit negotiations also contributed to worsening the fund industry prospects, especially in the UK where 75% of fund selectors were neutral (25%) or pessimistic (50%) for the next 12 months, respectively.

Distributor commentary

For the week ending 26th June 2019
  • “I think that a key driver will be a change in the interest-rate environment. If you look at the current yields on government bonds, they are practically zero or negative for the European space and also, to a great extent, for North America. I think that situation will change and that interest rates will go up. That will have an impact on fixed-income funds and the way they operate and it will also have an impact on equity markets and, therefore, on equity funds.”

    Drivers of change
    Netherlands,Private client portfolios - Discretionary
  • “The most important driver for change in the fund industry is the low-level interest rate phase. The bond sector will become the central problem which is why there is a need to offer 'modern multi-assets'. Active investment is under pressure and passives are in the upswing. However, we as a fund house and investment adviser will continue to have faith in an active and fundamental management and will focus on absolute returns in the liquid sector.”

    Drivers of change
    Switzerland, Private client portfolios - Advisory
  • “We particularly look at the risks in certain market phases and at the track record at the same time. The type of administration is also important to us. We prefer a system-based administration to that of a person-centred one. The fund also has to achieve positive returns after a change of manager. High stability and consistency are also important. On the other hand, we still would like our providers to react to our specific requirements as we often look for special niche solutions.”

    Selection Criteria
    Switzerland, Private client portfolios - Discretionary
  • “There are more and more smart-beta sectors being covered, with ever-more-specific investment focuses, and they are coming from both the specialist ETF providers and the traditional providers. So the offering in this sphere is becoming progressively more granular than it used to be. In addition, asset managers are trying to get away from benchmarks via variations on the absolute-return theme launching more-stable products and also products where they have different layers of risk (as in a hedge fund or a life company) and hence, products with a bit more complexity.”

    Innovative behaviour in the fund industry
    Sweden, Private client portfolios - Advisory
  • “There is a marked shortage of funds that offer currency plays. There are a lot of directional products but not many funds that invest in particular currencies. We could also do with more specialist long/short funds. I'm talking about funds with the scope to go genuinely short at times when market corrections - which are as inevitable as they are unfortunate - occur. Even if these corrections never last very long, usually no more than 12 to 18 months, it would be useful to have more funds that can provide a return even when the market is falling.”

    Product innovation requirement
    Italy, Private client portfolios - Discretionary

Value in local flair – boutique brands

8 July 2019
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By Fiona Maciver

Top ranking boutique brands

Fund buyers’ perceptions and rating of European asset management brands are revealed in Broadridge’s Fund Brand 50 report where the top cross-border and bou¬tique brands are examined. Alongside the rankings of the groups, the report highlights some core differences in the relative significance of brand attributes between the cross-border and boutique players. In the

Translate perception into business.

Fund Buyer Focus offers reporting and consulting services which provide third party retail fund suppliers with detailed information about how the major fund distributors perceive them and how this perception translates into business.

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