Disintermediation is transforming the way funds are distributed, which is why it is a fitting subject for the first in a series of research reports, written by Funds Europe in association with Clearstream, that examine what the future holds for the funds industry. Among the highlights of our survey:
• 80% of respondents believe customers get a better deal when their providers offer open architecture (a range of funds from competing fund managers)
• 59% think open architecture is under threat from financial and regulatory pressures
• 48% believe robo-advisers will become the industry standard for dealing with retail clients (those with less than $1 million of investable assets)
• 14% think robo-advisers will become the industry standard for dealing with high-net-worth clients (those with more than $1 million of investable assets)
• 67% believe passive funds such as ETFs will gain a bigger proportion of fund flows than actively managed funds in future
• 58% think today’s investors are more sophisticated than they were five to ten years ago (but 21% disagree)
• Respondents believe, in future, online direct models will be the main channel for distributing funds, performance the most important driver of investment and advisers the main place investors go for advice
A total of 192 funds professionals participated in the online survey.
For the next part of the report, click here.
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