GLOBAL - Boutique and specialist asset managers have experienced a keen upturn in business as pension funds turn their backs on large players, according to industry commentators.
Phil Hoffman, global equities portfolio manager at Russell Investment Group, said there was a continuing swing towards this type of manager: “Boutiques are certainly winning more mandates than before, particularly in my field which is a relatively new asset class.”
Hoffman concluded: “Pound for pound you get a better investor with some of these smaller firms. Many of them are run by seasoned professionals who have made enough money to stride out on their own.”
Following the hedge fund boom, smaller asset managers have sprung up in number, but it would appear this is not the only reason for an increase in mandate awards to boutiques and specialist asset managers.
Jonathan Polin, sales and marketing director of Resolution, which launched a multi-boutique umbrella within its ranks in May 2005, said he was surprised by rapidity of the businesses’ growth and success.
Polin commented: “Pension funds like the structure of a boutique; they can develop a relationship with the manager, who in turn takes ownership of the fund and can run it without having to conform to views held by larger investment firms.”
Polin added that consultants had become more pro-active in working with these managers as more were coming to market.
Here are key takeaways from our 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.
This week's top stories included a Freedom of Information request revealing more than 100,000 savers could face six-figure tax bills as a result of GMP equalisation.
The Pearson Pension Plan has entered into a £500m pensioner buy-in with Legal & General (L&G) in the insurer's first deal of 2019.