Specialists beating banks for funds flows
THE big four banks are failing to attract top funds management inflows in the current climate, according toAssirt, because of a trend towards sector specialists and the fallout from recent merger and acquisition activity.
The top 10 list of managers by inflows shows those with specialist offerings, such asPlatinumin international equities,Challenger Howardin the mortgage sector and APN Property in property funds, are attracting the largest flows.
This is evidence of a broader trend in the industry away from diversified funds into sector specialist funds, with the larger players in the market tending to be hardest hit, according to Assirt, given they are predominantly recognised for their diversification capabilities.
The failure of the big four banks to dominate inflows, despite appearing in the top five by size, can also be attributed to caution and uncertainty in the advisory community because of a recent spate of wealth management acquisitions and subsequent management changes, Assirt says.
“The jury remains out on whether they are a natural player in the funds management industry,” the report says.
Assirt has also extended its work in the boutique sector to cater for greater interest in this field, and stresses the increased importance of manager selection when moving away from diversified funds.
In conjunction withMoney Management, Assirt recently launched the Rising Star Award to encourage new and emerging managers, withInvestors Mutualreceiving the inaugural award.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
