Next year will bring the realisation that super clean is not so super, predicts Fidelity FundsNetwork.
FundsNetwork head Pat Shea is bullish on the outlook for the wider industry - forecasting a 21% increase in platform assets in 2014 - but suggests the significance of preferential share classes has been initially overstated.
He said: "The latter half of 2013 was filled with noise surrounding super clean share classes and we believe that where discounts are available, the fund management industry will initially favour rebates over super clean share classes, but we'll find out soon enough next year as the mist clears."
Fidelity Worldwide Investment recently announced it had secured the lowest priced share classes available from 75% of FundsNetwork's top 20 fund partners by assets on the platform, through its Access programme.
Under the terms of the Access programme, the platform will work closely with participating asset managers in order to promote their products in exchange for the lowest cost share price available.
Shea is positive on the outlook for the advisory community, despite the probability of further consolidations.
"For advisers, the future is promising. Whilst there will be some consolidation of adviser firms this is not as bad as it may first appear or sound, for we believe that adviser numbers will not fall to the levels that have been predicted and, that instead, the adviser market will flourish," he said.
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