A new survey from RBC Dexia Investor Services has found that international competition in the fund market is set to intensify over the next 12 months as demand for third party funds increases, and as transparency and performance outweigh domiciliation in fund selection criteria.
In November and December 2009, RBC Dexia Investor Services surveyed 94 global fund promoters and distributors handling assets under management ranging from under 500 million to 1.5 – 2 billion.
82% of respondents expected demand for third party funds to increase in 2010, with UCITS seen as the major catalyst. Interestingly, only a third of participants saw risk management as an obstacle to third party investment.
“The resilience of the fund market is apparent in our latest survey, and it is marked by a clear trend towards the internationalisation of investment strategies in a quest for higher returns,” said Rob Wright, Global Head of Product & Client Segments at RBC Dexia. “But investors have become more cautious, and as the choice of funds increases, so too does the need for security and transparency. Competition will continue to heat up as the range of choices to investors widens and the fund market evolves to meet their needs.”
Online reporting topped the wish list for fund ordering platform elements, with 80% of respondents seeing it as a primary feature.