UK - Schemes will look increasingly to fund managers to provide asset allocation services instead of consultants, Credit Suisse Asset Management predicts.
And it believes the switch will herald a return of balanced management.
CSAM said investment consultants’ traditional role of providing asset allocation advice was changing as they focused on asset-liability studies and manager-selection advice.
CSAM deputy chairman Robert Parker says schemes will fill the void by turning increasingly to fund managers to provide asset allocation advice.
He said: “The big evolution is the emergence of sophisticated asset allocation advice from fund managers to their clients.
“This trend is prompting a revival of balanced fund management, which lost popularity in the late 1990s as the specialist model of fund management won favour.
“This time, however, the balance is made across a more diverse range of markets and asset classes.”
But Isis Asset Management head of institutional business Robert Matthews said that rather than trying to usurp the consultants’ traditional role, all parties should work together.
He added: “It is important that the fund manager, consultant and trustee work closely together in a three-way partnership.
“The skills and depths of resources of fund managers has increased, particularly in terms of risk management and risk modelling, and this can be an advantage to both the trustee and the investment consultant.
“I certainly don’t see this as a conflict – it is very much a partnership.”
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