Following the Financial Conduct Authority’s recent damning report on the funds industry, European asset managers have been warned not to let the US presidential election or Brexit distract them from discontent over fees and performance.
The FCA is set to introduce a single all-in fee that could put more pressure on revenue levels after voicing its concern over about fees at the higher end of the scale.
In a report by asset management research firm Cerulli, it said that in the aftermath of the market ructions caused by Donald Trump’s election, one trend stood out: passive funds fared best.
Barbara Wall, Europe managing director at the firm, said that managers with established funds may be able to leverage the ‘Trump factor’ in the short term, but that others will need to think twice before “entering the fray”.
“Trump’s presidency means that active management, including stockpicking, will come into its own. However, fund providers will need to present a strong case to counter the fact that 97-98% of US and global equity funds have underperformed their benchmarks over 10 years,” she said.
©2016 funds europe
