Independent asset managers were the dominant players in Europe in the years following the financial crisis, capturing 90% of all inflows. However, this trend has reversed since 2014. In the past two years, asset managers owned by banks and insurance companies have recaptured market share, according to research by Cerulli, the asset management consultancy.
Flexible bond funds were many an investor’s favourite answer to the challenging yield environment. By being able to switch between different bond categories, a fund manager would be better equipped to hunt for the scarce yield available, was the idea. But it has lost its shine, and investors have started to abandon unconstrained bond funds.
Which criteria do fund analysts value most when they conduct an investment fund screening process? Research firm Cerulli asked the question to a sample of fund analysts based in the United States. The answer? They care most about the costs, and much less about track record.
Distributors in Asia-Pacific are likely to use exchange-traded funds and other index-tracking products as core holdings when building model portfolios, according to Cerulli Associates.
Asset management companies are starting to struggle explaining their investment philosophy to fund selectors according to a survey by research outfit Cerulli. It asked a selection of European asset managers what they find the biggest challenges in promoting their products to fund selectors.
Though the Italian economy is still on stand-by, shrinking 0.1% in 2014, asset management in the country is booming. International asset managers are therefore planning a marketing offensive in the country, according to a survey conducted by Cerulli.
Mutual funds with the highest possible rating attract almost all inflows from investors, while lower-rated funds register large net outflows.
Net inflows into mutual funds by Spanish and Italian investors spiked in the first eight months of 2014
The number of launches of new frontier market funds has come down to a new low, with only one fund specialised in the asset class having been launched in the first half of this year.
Asset managers are having a hard time convincing decision-makers at pension schemes to place their mutual funds on their buying lists.
Last years buoyant equity markets have resulted in a spike of equity fund launches in Europe in the first quarter of 2014.
Asset managers know what fund selectors care about when selecting funds, but they overestimate the importance of some of their funds’ features to fund buyers.
