Around 35% of European institutional managers expect fees for assets run in funds will fall in the next 12 to 24 months, according to a new report on the European institutional asset management industry by Cerulli Associates.
According to the study, in 2012 only 4% of managers reported fall in fees for assets run in funds.
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Around 17% managers also expect lower charges to manage assets in segregated accounts during the next two years.
According to some managers, the separate accounts are costly to run and cumbersome, when compared with pooled funds, as they create distraction from their main strategy.
The study also found that German insurers will need bailing out, more Dutch pensions will cut pay-outs, and many asset managers hold negative views on the convergence of investment management and advisory services.
Cerulli Associates senior analyst and the report author David Walker was quoted by Global Markets as saying that the pooled fund model that many asset managers grew up on is not dead in Europe’s institutional marketplace, but it is struggling to justify its role for the largest of allocators, who overwhelmingly demand separate accounts.
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By GlobalData
