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.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.