UK - Medium-sized fund managers cannot meet the growing demand for specialist investment and face being squeezed out of the market, Aon Consulting predicts.
The consultant believes a sharp contraction in the fund management market – similar to the Big Bang in stockbroking in 1986 – will lead to the sale of many fund managers, which are unable to compete with better-resourced large managers and smaller niche managers.
Aon investment principle Chris Erwin said: “We are finding that the managers that will survive are either the smaller managers – who are really quite specialist – or alternatively the bigger fund managers that have been developing a range of products with differing risk levels.
“Medium-sized firms can’t afford the staff to do this.”
He added: “There are a very large number of fund managers up for sale, but there are virtually no takers at the moment.”
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