The UK financial regulator FCA wants asset managers to introduce an all-in fee for funds, claiming it would aid simplicity and clarity for retail investors.
Two thirds of asset managers expect it will be “more challenging to achieve growth” in the current market environment, according to a survey by State Street. To still be able to hit their growth targets, they plan to expand operations into new country markets.
It has now been a year since the UK electorate made, as a British fund manager put it recently, “a huge strategic error of the like the country hasn’t experienced in maybe a century” by voting for Brexit.
“Positive and constructive” was how the UK’s Brexit secretary David Davis described his mood as he kicked off negotiations with the EU on Monday morning.
The headlines say fund groups’ profits fell, but what else can we learn from McKinsey & Company’s Asset Management 2017 report into the European funds industry?
Worldwide profits for traditional mutual fund groups fell by close to 3% in 2016, despite higher assets under management, according to a report by McKinsey.
Sterling has taken a hit and yields on 10-year gilts initially dipped, but the main FTSE stock index edged higher, recouping early losses, as the UK woke up to anything but a ‘strong and stable’ government.
This year’s dollar weakness took most investors by surprise. There are, however, obvious reasons for this, and fundamentals suggest it could reverse.
Sovereign wealth funds missed their return targets for the second year in a row in 2016, according to a study by Invesco. By focusing too much on the short term, they risk a longer spell of underperformance.
When it’s up to fund buyers and asset managers, there are only two, or perhaps three, candidates for best performing asset class over the next 12 months.