Rising average fees a driver of optimism in UK funds industry

Asset and wealth managers in the UK “returned to optimism” in the first quarter of 2017, following a period of “intense pessimism”.

Fund flows grew in the three months to March – though growth is expected to slow over the coming quarter, a survey by the Confederation of British Industry and PwC found.

Despite expected lower fund flows, spreads and average fees and commissions were expected to rise, with profitability continuing to improve strongly.

Mark Pugh, UK asset and wealth management leader at PwC, said: “The industry has picked itself up and feels in a stronger position than it did six months ago. Nonetheless, the sector remains sensitive to uncertainty and potential market volatility.”

Total operating costs rose sharply in the first quarter and were expected to continue at the same pace in the coming three months. Despite this, firms continue to invest in technology, if at a lower pace in the next quarter.

Regulation and legislation were cited as the main constraint on business expansion for asset and wealth managers in the year ahead, particularly due to uncertainty over MiFID II and similar regulation.

The survey also found that respondents saw M&A playing a part in their growth strategies in the coming year, alongside organic growth strategies aimed at retaining existing customers.

©2017 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST