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
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
