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.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.