EUROPE - Some 87% of European fund managers think that investors lack faith in them to beat the current market downpour. The survey, which forms part of a series from research and ratings firm Morningstar Europe, also revealed that most fund managers are desperate for a stockmarket recovery to bolster the industry's profitability.
Some 64% of managers said that a rebound in equity markets mattered a lot in regaining investor trust. Another 34% said it mattered a little, with 2% saying it had no effect.
“At present fund management groups do not seem to think that investors have much faith in them. Only 11% said that investors trusted the industry a lot,” said Morningstar’s editor-in-chief, Niklas Tell. Overall, fund groups were more cautious on the prospects for world stockmarkets, with most now predicting that the MSCI World Index in euro terms will gain 5%-10% over the next 12 months.
“This could be explained by the weak outlook for the dollar since 56% of groups say that it will be the worst performing currency over the coming year,” added Tell.
An increasing number of managers (18%) said that emerging Europe will be the best performing market compared to April (6%). Japan is still expected to be the worst (47%)
Sectorwise, 16% thought that financial services and healthcare would be the worst performers over the next 12 months.
Morningstar polled 86 fund managers in Austria, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Switzerland, Sweden and the UK with an average e56bn assets under management.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.