Frontier Advisers surveyed 60 institutional investors and 150 fund managers as part of a report titled Managers & Investors: How do they see the market?
Only 10 per cent of fund managers felt the same way about consolidation within the sector.
In addition, 43 per cent of investors surveyed said fund managers ‘will need to trim fees to remain competitive’ – while only six per cent of fund managers agreed with the statement.
It will come as little surprise that not a single institutional investor agreed with the statement ‘Fund managers provide a depth of research internal teams can’t match’.
Forty-seven per cent of fund managers thought their research capacity was superior to in-house research teams.
But there was some common ground between the two groups.
Around one-third of investors and fund managers said that fund managers should be primarily remunerated on their performance.
In addition, almost no one from either group agreed that fund managers will ‘reduce product complexity and performance to meet fee targets’.
“Individually, more than 90 per cent of managers expect their businesses to grow in the next five years, with one-third of investors thinking the exact opposite,” said the report.
“We’d expect, and hope, managers would have confidence in their businesses and while investors are not quite as bullish, 60 per cent do share their optimism,” it said.
