EUROPE - Equity funds are expected to make a performance comeback over the next 12 months, according to fund rating agency, Morningstar.
Hedge funds also appear to be slipping out of favour, reported the survey of 61 investment managers across Europe and the UK, who hold an average of EUR53bn in assets under management.
Only 13% saw hedge funds making up most new fund launches over the year. Instead, fund of funds, and conventional, or plain ‘vanilla', funds were expected to dominate the scene.
About 66% of respondents said that most new funds launched in the next 12 months would be equity-based.
Fund managers also showed continued optimism about overall stock market performance; around 50% highlighted Asia (ex-Japan) as the region with most performance potential over the period.
According to Morningstar, most fund managers also seem to be responding to a demand in ethical or socially responsible funds. Some 80% said that these types of funds will increase their popularity into next year,
By Madhu Kalia
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.
This week's edition of Professional Pensions is out now