Fund Distribution in UK 2016 Focus Report

Transcription

1 AVAILABLE NOW Price: EUR Includes: PDF, Hard Copy & Debriefing Call Enquiries: Isabel Candela on WHO SHOULD PURCHASE THE REPORT? Local, European & Global Heads of Sales Market Intelligence Product Development Senior Management Content Samples - February 2016

2 Editor s Note Dear Reader, The UK fund market and the UK fund distribution landscape both come in European superlatives, in institutional as well as in wholesale and retail asset management. The UK is Europe s largest fund market and home to many international powerhouses in asset management. The UK is also home to Europe s largest fund of funds market and the largest investment consultants market, with scary dominance of institutional assets. The UK also features Europe s largest direct to consumer market and UK asset manager s advertisement spendings take leading positions. The challenging investment environment experienced alongside major regulatory updates, like RDR for instance, in combination with a lot of corporate activity and vertical integration have started to rattle around the industry. This Fund Distribution in the UK comes at a truly exciting time, with a lot of changes, adaptions and consolidation witnessed and further expected - with new winners and losers ahead. The sheer size of the UK fund buyer market - in total & in each fund buyer segment - is overwhelming. The landscape is so rich in choice, that every, however, truly value-adding fund manager should find significant distribution opportunities, even on a very selective level. There are many foreign asset managers, which may be widely unknown to the broad UK fund buyer market, with very substantial assets in the UK. However, gaining traction in the UK fund distribution market is not short of challenges. This report dives deep into the UK fund landscape and provides insights on each fund buyer segment, such as banks, fund of funds, investment consultants, pension funds or wealth managers. We focus on practice relevance. We aim to address what it takes in reality to build a successful business in terms of sales, client service models, etc. In addition we apply clear opinions and forward thinking recommendations. Our fund distribution country reports have quickly established themselves as highly practice relevant 360 degree perspective intelligence sources for fund distribution leaders and market intelligence units worldwide. On the following pages we show you the table of contents, a synopsis of the report s executive summary as well as an illustrative cloud of snapshots out of the report. Make sure you do not miss out this report on fund distribution in the UK, which many of your peers have already ordered. I trust you enjoy the report and that it provides real value to you. All the best Philip Kalus managing partner accelerando associates 2

3 Table of Contents Disclaimer Page 2 Editor s Note Page 4 Executive Summary Page 5 European Fund Distribution Landscape Page 9 - Snapshot Page 10 - Introduction Page 11 - Best Selling Markets in 2015 Page 13 - Best Selling Asset Classes in 2015 Page 14 - Best- & Worst Selling Sub-Categories in 2015 Page 15 - Best- & Worst Selling Asset Classes by Countries Page 16 - Best Selling Funds / Promoters in 2015 Page 17 - Best Selling New Fund Launches in 2015 Page 18 - Fund Selector s Most Used Groups Page 19 - ETFs in Europe Page 21 - Mergers and Acquisitions Page 23 - Changing Fund Buyer Landscape Page 24 - Price Pressure Everywhere? Page 25 - The Impact of MiFID II & Co. Page 26 - The Impact of Solvency II Page 27 - accelerando Senior Sales Survey 2016 Page 28 UK Fund Landscape Page 30 - Introduction Page 32 - Domestic Fund Managers Page 33 - Top 20 UK Fund Managers Page 34 - Domestic Fund Leaderboards Page 35 - UK OEICS Page 37 - Domestic Fund Managers - Rising Stars Page 38 - Foreign Fund Managers Page UK Lipper Award Winners Page Investment Week Award Winners Page 41 - Alternatives Page 42 - Hedge Funds Page 43 - The Impact of RDR Page 44 - The Potential Impact of the Brexit Page 45 - The Case of the Investment Association Page 46 - The Scrutiny of The Financial Conduct Authority Page 47 UK Fund Buyers Page 49 - Snapshot Page 50 - Introduction Page 51 - Fund Buyer Methodologies Page 52 - The Case of Vertical Integration Page 54 - Banks Page 55 - Fund of Funds Page 57 - Investment Consultants Page 59 - Insurance Companies Page 61 - Top Insurance Companies Page 62 - Independent Financial Advisors Page 63 - Wealth Managers Page 64 - Family Offices Page 66 - Family Offices / UK Rich List Page 67 - Fund Platforms Page 68 - Pension Funds Page 70 - An Excursion to FinTech Page 71 - Tech Giants - Tomorrows Mayor Fund Distributors? Page 72 Brand, Conferences & Media Page 74 - Brand Page 75 - Brand - The Impact on Fund Selectors Page 77 - Investment Marketing & Innovation Awards 2015 Page 78 - Conferences Page 79 - Media Page 80 - Ratings & Rankings Page 81 Fund Distribution in the UK Page 82 - Most Common Distribution Models (Overview) Page 84 - Third Party Marketers Page 85 - Distribution Opportunities - At A Glance Page 86 - Distribution Opportunities Page 87 - Distribution Challenges - At A Glance Page 88 - Distribution Challenges Page 89 - Client Service Model Requirements Page 90 A Bonus Round Recommendations from accelerando Page 91 Appendices Page 94 - Country Snapshot Page 95 - Useful Links Page 96 About & Imprint Page 97 - About Page 98 - Fund Distribution Series 2016 Page 99 - Imprint Page 100 3

4 Executive Summary With 6.6 trillion AuM the UK is Europe s largest fund market. London is the leading financial centre in the UK with 80% AuM, followed by Edinburgh and Glasgow. There are 57,000 individuals employed in UK fund management, with 40% of the large and medium sized asset management firms in London being owned by overseas group. Nearly two-thirds of funds under management come from institutional clients. UK funds under management accounts for 8.4% of global fund management assets Beyond the large amount of very sizable fund management firms in the UK there is also a very large pool of outstanding investment boutiques. London, the City and the West End, are not short of well established, but in size concentrated boutique fund managers, but also a lot of truly hidden pearls, which put investment discipline over company and AuM growth The United Kingdom, better yet London, serves as the central hub for European fund distribution for decades now - especially for US american fund houses. The list of American fund houses present in London and coordinating Europe out of London is comprehensive and features the who is who of US fund management. However, the increased push of Asia-based, especially Chinese asset managers setting up operations in London should be mentioned. London is the second largest global centre for hedge funds and has become one of the leading centres for private equity and property funds. The UK is Europe s preferred choice for hedge funds. Around 800 hedge funds in the UK manage approx. 85% of European based hedge funds assets. The UK fund buyer landscape also comes in European superlatives. The UK features Europe s largest and most mature pension market, Europe s largest fund of funds market, Europe s largest and most crowded investment consultant pool - with scary influence -, some of Europe s largest banks and wealth managers. London is home and / or hub to many of the ultra rich of this world and made UHNWI private wealth space to flourish further. Fund houses face no shortage of potential fund buyers The UK fund buyer market is a highly regulated sector and many recent regulatory initiatives, most predominantly the introduction of the RDR, have a tight and severe impact in the sector. Sector borders, or the segregation between different types of UK fund buyers has become increasingly difficult, which is very different to any other European country. Wealth managers become also platform providers, platforms have acquired wealth managers, IFAs partnered with DFMs (discretionary fund managers) to provide clients access to portfolio solutions. In addition fund groups bought distributors like platforms or wealth managers and some large wealth managers also became fund managers. Vertical integration all over The level of sophistication of the UK fund selector is high. It is not unusual to face individuals with well over 20, sometimes even 30 years of experience in fund and in fund manager selection The UK is the largest fund of funds market in Europe, with assets of 145bn. There are 78 third-party fund of fund managers in the UK, running about 507 fund of funds between them. Allocations to funds from Continental European groups appear rather low, but we expect this change going forward, based on increased efforts by some European fund houses and also more willingness by UK fund selectors to look beyond the home turf. Investment consultants are one of the most prominent and influential sectors in the industry, especially concerning UK pension funds. Various UK surveys suggest the top three consultants advise around 80% of UK pension assets. 4

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6 Imprint All rights accelerando associates international SL 2016 Editorial Team Philip Kalus (responsible) Isabel Candela Charles Velie No part of this report may be reproduced or transmitted in any form or by any means without the written permission of accelerando associates international SL. accelerando associates international SL Avenida San Lorenzo 187, AP B El Vedat de Torrent (Valencia) Spain info@accelerando-associates.com