Over 50% of advisers tell us they use multi-manager/multi-asset funds however asset flows seem to be stalling, the less mature D2C space looks much more positive. In the final update of our Fund Distribution 2015 series: Multi-Manager in Focus we look at the trends affecting the multi-manager market and where pressures have arisen from.
The following sections are features in the report:
- Sales and assets under management: a comparison of flows into both fettered (invested internally) and unfettered (invested externally) multi-manager funds over the past five to ten years
- Analysis of multi-manager funds by usage, client types and future prospects: explores the circumstances in which a financial adviser would recommend a multi-manager fund
- Profile of the top multi-manager fund providers: in-depth analysis of the most popular multi-manager funds, the following providers are covered: Aviva, F&C, Fidelity, JP Morgan Asset Management, Jupiter Merlin, Seven Investment Management and Standard Life MyFolio.
Findings include:
- Growth in assets is stalling in the adviser segment of the market: unfettered funds usually have high fees which has impacted flows, these are used primarily for smaller value clients.
- The outlook for the D2C space is much brighter, 10% of Hargreaves Lansdown’s funds under management sit in unfettered fund-of-funds
- There has been an increase in the use of passives as the underlying investments, the main reason behind this is to reduce overall fees.