European asset managers will need to stimulate investor interest in actively-managed products if they are to improve performance post-crisis.
Fitch Ratings says in a report today that European asset managers will need to restore and strengthen the resilience of their business models as well as improving relationships with investors if they are to see their businesses grow through these volatile markets.
The ratings agency says asset managers will also need to offer investors greater transparency with regard to products, processes and communication, in order to fully restore investors’ commitment to actively-managed products.
Fitch EMEA fund and asset manager rating group head Aymeric Poizot says: “Asset managers continue to battle with more volatile capital markets, more demanding and cautious investors, increasing competitive pressures fuelled by the globalisation of the industry and the advent of substitution products.”
Poizot says the capacity to offer tailor-made as well as off-the-shelf products adapted to investors’ needs such as moderate absolute return funds, life-cycle, risk-defined or income generating products are key.
Also, he says managers may also need to involve investors more in investment decision-making or risk management, to forge a closer relationship with them. Poizot says managers may also require more flexible cost structures, which could be achieved via outsourcing, and lower break-even points.