UK/EUROPE - Fund managers are having to rethink their business strategies in the face of investor dissatisfaction and falling markets, a KPMG survey reveals.
Its study of 125 fund managers in Europe and the US – carried out alongside think-tank CREATE – found “business fundamentals” were ignored in the bull markets of the 1990s.
It said firms were now refocusing on customers’ needs, rather than profits, to retain business.
CREATE chief executive Amin Rajan said that in the 1990s fund managers had weak customer focus, few guiding principles and sparse teamwork. He said fund managers now realised that these traits were liabilities which they had to remove.
KPMG predicts fund managers will offer fewer products to achieve lower unit costs, and the practice of charging clients on the basis of performance will spread.
Additionally, their activities will increasingly be centralised in fewer locations in order to reduce costs and increase accountability.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.
UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).