A number of asset managers stand to double their market share if they are prepared to be aggressive on super clean pricing, according to research from Barclays.
Barclays analysts have indicated that super clean share classes are set to become increasingly commonplace going forwards, leading to 'big brand' fund managers taking a larger market share and the six largest platforms controlling the majority of discount deals in the platform space.
Barclays research analyst director Daniel Garrod said: "The Retail Distribution Review (RDR) could cause a concentration of market share with potentially strong advantages for the bigger players who can absorb these super clean discounts.
"It may not be the two largest [retail asset managers] who are going to be most aggressive on pricing but the rung beneath. We are saying that you could take that mid-high single digit market share and, if you are most aggressive on pricing, turn it into over the medium term into potentiality 15% market share."
Invesco Perpetual and M&G currently hold the largest individual market shares within the ‘highly fragmented' retail space, controlling 10% and 9% respectively.
The rung beneath refers to fund managers including Threadneedle and Schroders who control 6% and 5% respectively, according to figures from the IMA.
Schroders head of Intermediary Robin Stoakley recently conceded that industry asset management margins might fall by 15-20% over the medium term.
The top five platforms - Cofunds, Skandia Fidelity FundsNetwork, Hargreaves Lansdown and Transact - are predicted to be among the only platforms who will secure preferential share class deals and will, in turn, drive the majority of flows.
These platforms currently administer 21% of all UK retail assets under management, but account for 31% gross flows and 57% net flows.
The direct-to-consumer section of the industry, in particular, is set to receive additional stimulus between now and 2015 from IFA exit and orphaned clients.
Hargreaves Lansdown is singled out as well positioned based on its "distribution reach, brand and guidance content."
Hargreaves is predicted to announce lower-end client charges of around 70bps and 30bps for larger accounts, when it publishes its new clean fee structure.
Larger IFA networks including St James's Place, Sesame, Intrinsic, and Openwork, are also presented as potential winners in a post-RDR environment.
"Retail flows appear to be consolidating on fewer networks or platforms and we project this trend continues", according to the report.
At PortfolioMetrix since April
'Humanises our offerings'
After facing adviser backlash
On 24 & 26 September