Boutique firms suffer as RDR sparks 'flight to trust'

clock

Boutique fund managers suffered a marked slowdown in growth ahead of the Retail Distribution Review (RDR) as investors flocked to trusted brand names, according to new research from the IMA.

The trade body’s 11th annual Asset Management Survey revealed its boutique members grew 3.9% in terms of AUM in 2012, below the wider industry growth rate of 7.9% for the first time ever. Growth has softened considerably since 2011, when boutiques posted a 29% increase in AUM, well ahead of the average of 17%.  “This may suggest a more challenging commercial and operational environment for smaller players, which is now increasingly coupled with growing regulatory burdens,” said the survey. It warned one of the unintended consequences of RDR could be a more polarised fund management...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

Newton IM's Euan Munro

Talking with… Newton IM's chief executive Euan Munro

The series continues as Richard Romer-Lee talks to Euan Munro

Richard Romer-Lee
clock 26 September 2023 • 5 min read
Adjusted operating profit fell to £15.9m, down from £21.7m a year ago.

Close Brothers AM profits tumble 27% amid sale rumours

Lower income from advice and higher recruitment costs

Laura Miller
clock 26 September 2023 • 2 min read
Partner Insight: Vanguard - what's the impact of ESG funds on a portfolio?

Partner Insight: Vanguard - what's the impact of ESG funds on a portfolio?

Andreas Zingg, Head of Multi-Asset Solutions, Vanguard Europe, explains why the risk and return characteristics are different for ESG building blocks – and how advisers can take this into account when constructing portfolios for clients with ESG preferences.