Report predicts AM consolidation and more specialist funds

The report, UK Asset Management Industry - Dynamics and Challenges, found that firms are moving towards a multi-boutique business model to cope with the competition, increasingly outsourcing certain operational functions to gain cost advantages. It adds that managers are expanding product offerings to include a boarder range of absolute return products. "Faced by increased competition from small specialist investment managers, and driven by the need to bring costs in line with falling revenues in a challenging investment market, large asset managers may look to acquiring niche investment...