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 31th Jannuary 2019
  • “Since couple of years everybody started with ESG. Now they are sort of stepped further and they are discussing about adding sustainable development goals into their investment . In addition, there is more focus on real assets, if you will. Apart from real state, also looking at infrastructure. Considering low yield environment, there is more movement towards more illiquid products: either hedge funds or private equity.”

    Innovative behaviour in fund industry
    Netherlands, Private client portfolios - Discretionary
  • “The only innovation I am seeing is that they are still finding ways to continue selling after Brexit, but they are merely asset gathering and are not doing anything for our benefit. ESG they are pushing (and AI), and they are certainly trying to meet the ETF growth head-on but the only way they are going to do that is by making sure their active performance is better than a passive fund, but most of them are failing apart from the performance of JPMorgan and Fundsmith.”

    Innovative behaviour in fund industry
    United Kingdom, Private client portfolios - Discretionary
  • “One trend that I've noticed is that asset managers are expanding the selections of thematic funds that they offer, and another is a shift on their part from global funds to more niche-type products. On the fixed-income side, meanwhile, people are looking for multi-asset, absolute-return and generally, more-flexible types of funds. Given the low returns in fixed income at present, they are looking to identify niches in which there is some potential for generating added value. In addition, I've noticed that asset managers are now more price-aware when it comes to launching new share classes.”

    Innovative behaviour in fund industry
    Spain, Private client portfolios - Discretionary
  • “Innovation falls mainly within the scope of alternative management/alternative investments. We particularly like Varenne, which stand out from the crowd by combining fundamental with macro aspects, and are developing extreme-risk hedging in their investment approach. But we are not really seeing any innovation in the area of conventional asset management.”

    Innovative behaviour in fund industry
    France, Funds of funds management
  • “All providers are increasingly concerned with topics like robo-advisors, fintech etc. and feel compelled to offer their own ETFs which ties up a lot of capacities and money. Both tendencies are directed against brokers and are neither relevant nor expedient for the broker pool. Ultimately, it's about a matter of trust. A personal relationship in which the investor can address his requirements and concerns, which applies particularly to the very reticent German investors, matters more than mechanical processes.”

    Innovative behaviour in fund industry
    Germany, Independent financial advice / Intermediary services
  • “I think that the big challenge is going to come from those operators that are first to modify their pricing policy in a more aggressive manner than their competitors. Menwhile, with the advent of MiFID II, I think that people who construct custom-made discretionary portfolios are going to run into difficulties. At the same time, I am expecting to see substantial development in the area of packaged investment products. That's why I think that in future there is also going to have to be a much greater availability generally of clean share classes.”

    Innovative behaviour in fund industry
    Italy, Independent financial advice / Intermediary services
  • “I expect the fund managers to act flexibly in rapidly and profoundly changing markets and environments. Volatility will increase. The changing regulatory requirements, especially in Europe, will create difficulties and challenges for the fund industry. They will particularly lead to increasing transparency and lower management costs for customers.”

    Drivers of change
    Austria, Independent financial advice / Intermediary services

Broadridge’s Fund Brand 50 Reveals the Best European Asset Management Brands 2019

18 March 2019
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LONDON, March 13, 2019 – Fund Brand 50 (FB50), a research study by Broadridge Financial Solutions, Inc. (NYSE:BR), a global Fintech leader, reveals the best brands in European third-party asset management and names the latest movers and shakers. The independent study, now in its eighth year, measures asset managers’ relative brand attractiveness based on fund selector perceptions across ten brand

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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