More challenges ahead
Low returns on risk-free assets in a context of financial repression, volatile financial markets, regulation tsunami, pressure on margins due to increased competition and an unfavorable product mix, the asset management industry is more than ever facing multiple challenges, despite an increase in assets since the beginning of the year. ... Only companies that adapt quickly to the new environment will emerge as winners. The emergence of the loans market is very promising in this respect.
The UCITS IV Directive has greatly facilitated the distribution of funds in Europe, loosening the single market for funds in Europe by accelerating the procedures for cross-border marketing and creating new tools while enhancing investor protection. But international development, now the Holy Grail for European companies requires resources that are not accessible to all stakeholders.
However, to shine abroad, some financial markets are essential... Dublin and especially Luxembourg continue to hold their own in the game, both in terms of fiscal and administrative stability of services. And the advent of the AIFM Directive, the creation of a European market for all alternative investment funds, should accelerate this phenomenon. However, beware of some regulators less strict practices…
Meanwhile, the battle between active and passive management is more than ever on the agenda. The phenomenal growth of ETFs continues unabated, interest in alternative betas offering even a new engine of development, even though the alpha strategies continue to attract investors... There is still room for the talented manager!