With ultra high net worth appetite expected to grow
Investment grade corporate dominates sustainable bonds, but range of asset classes will grow, says consultancy
Europe’s passive funds will be given a boost in 2018 at the expense of active funds thanks to Mifid II’s drive for transparency on costs, according to research firm Cerulli Associates.
Unconstrained bond funds have seen almost unconstrained inflows this year, according to Morningstar data. While more than 40% investors in Europe don’t use such funds, those who do invest in them tend to like them a lot.
Three quarters of institutional investors in Europe are planning to beef up their allocations to so-called alternative risk premia, or smart beta, according to research by Cerulli. But what factors are most sought after is determined by investors’ nationality.
The country with the highest level of retrocessions in Europe also was the most lucrative market for active managers in 2016. Little wonder some asset managers believe Mifid II will negatively impact fund sales.
More than 60% of wealthy investors in Germany, Switzerland and the UK are “fairly” or “very” confident in their ability to construct investment portfolios without any outside help, according to a study conducted by asset management consultancy Cerulli.
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.
The problem of managers “dressing up” track records of their funds has been
getting worse, not better. This is the conclusion of asset management consultancy Cerulli after talking to a bunch of fund consultants in Europe.
All institutional investors in Europe negotiate the fees of the alternative investments they have with asset managers, according to research by asset management consultancy Cerulli.