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rights, which allow UK firms to domicile funds in Luxembourg and Dublin and manage them out of London, will be withdrawn.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

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.


Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.


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.


Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.