Brexit “not a game changer” for asset managers

The UK's decision to leave the European Union is “not a game changer” for the asset management sector, though fund groups affected by the summer's outflows may have to work harder than ever to attract investors back to them, say analysts at Cerulli Associates. The firm says it does not believe passporting and Ucits-labelling rights, which allow UK firms to domicile funds in Luxembourg and Dublin and manage them out of London, will be withdrawn. Moreover, it expects any new conditions attached to these rights to be minimal. “The EU would have little incentive to deprive itself of the expertise of Europe's biggest financial centre, or to risk restrictions being placed on the export of EU goods and services into the UK," Barbara Wall, Europe managing director at the firm, writes in the Cerulli Edge European Trends report. Elsewhere, the report suggests the latest round of central bank interest-rate cuts and quantitative-easing extensions will bring relief to asset managers suffering in the wake of the Brexit vote. "Most firms are not expecting outflows, which admittedly were very large, to be magically reversed in the next month. However, they have already stabilised and most industry watchers expect the second half of the year to show a more positive trend," said Wall. Despite market uncertainty there were still 241 equity funds launched in the first six months of 2016, with BNP Paribas Investment Partners alone launching 22, and Edmond de Rothschild nine. However, there were 38% less launches compared to the first half of 2015, which saw 387 launched. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.