View more on these topics

20% Of asset firms could fold

One-fifth of asset managers in the US and UK are likely to disappear, according to forecasts from the IMF.

Former FSA manager of transaction monitoring and Kinetic Partners member Monique Melis told the Tisa conference there is likely to be a big shift towards passive managers. She pointed to IMF forecasts that between the US and the UK, mainstream asset managers will lose about 20 per cent of their assets to passive and specialist firms. Profits will fall by 25 per cent and around 20 per cent of mainstream asset managers will disappear while net outflows will continue until at least 2010, says the IMF.

Seven Investment Management director Justin Urquhart Stewart said: “Those who have lived on the hog’s back and got used to a level of fat and comfort are going to have to reset their businesses as we go through leaner times.”

Melis, who was previously head of business development at the Cayman Islands Stock Exchange, also told delegates she believed the tax haven did not have a strong regulatory regime. She said: “The regulator there is not very effective, it will do nothing there unless it is prompted by the IMF or a bigger international body.”

Recommended

ABI’s 30-day transfer target misses the point

The Association of British Insurers’ 30-day target for transferring pension fund has been criticised by advisers.
The Retirement Adviser director of retirement planning Nick Flynn said it was ridiculous that while some firms would guarantee a quote for an annuity for two or three weeks, the failure of other firms to transfer funds on time left those quotes redundant. “On one hand, you are offering 30 days to move the money and on the other, most insurers are promising people two or three week guarantees. You are promising the client something they cannot have because the rates are going to move,” he said.

Tory attacks firms for failing on LTC

Tory Shadow health minister Stephen O’Brien has hit out at the insurance industry for failing to provide “sustainable and attractive” long-term care products.

Large-cap growth alpha thesis: seeking risk-adjusted excess returns

Content supplied by Loomis, Sayles & Company — an affiliate of Natixis Global Asset Management For mutual fund investors and managers of large pensions or endowments, a major challenge is to identify those portfolio managers who are most likely to deliver superior risk-adjusted returns in the future. Understanding how an investment philosophy informs a manager’s decision […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment