UK - Fund managers are angry at research visits from consultants which offer multi-manager as they feel the information gained could be used against them.
Fund managers fear that these consultants could use commercially sensitive information – gained from visits conducted on behalf of pension scheme clients – to benefit their own in-house operations.
The concerns come as one of the country’s largest fund managers has revealed that is reviewing its relations with a consultant that has launched its own MoM service.
One senior industry source said: “This practice is in its infancy, but many investment houses are watching carefully to see how the two parts of these businesses interact.
“The fund managers are very unhappy about the links between the two.”
Fund managers point out that SEI Investments had to pull out of the investment consulting business in the US following anger from both fund managers and clients.
Another source said that while fund managers were uncomfortable with consultants running their own investment management divisions, if the MoM market grew in line with industry expectations then they would be forced to accept it, as the vast majority of UK-based schemes use consultants.
He said: “We may not like this but the reality is that we will have to live with it.”
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