On the go: Institutional investors in Europe are set to ditch fund managers they deem are both charging too much and providing unsatisfactory levels of reporting and transparency.
A survey of 100 institutional investors and wealth managers by Global Palladium Fund found that 33 per cent think there will be a dramatic increase in the value of investments switching from expensive funds into those with more competitive fees over the next two years.
A further 51 per cent think there will be a slight increase in investment outflows.
The survey, which canvassed 100 institutional investors in the UK and Germany, also revealed that investors are placing a similar focus on the level and quality of reporting from fund managers.
Some 42 per cent of respondents anticipate a dramatic increase in investment outflows from funds with lower levels of reporting and transparency, while a further 32 per cent believe there will be a slight increase in investment outflows.
Over the next two years, 94 per cent of survey respondents said they expect institutional investors, wealth managers and family offices to demand greater levels of transparency and reporting from the fund manager they use, and 77 per cent said the focus they place on trying to reduce fees will also increase.
Alexander Stoyanov, chief executive of GPF, said: “There is a growing number of funds available to investors, who at the same time are becoming more sophisticated in what they want from fund managers.
“Having very competitive fees and high levels of reporting and transparency are now just as important for fund managers to have as their stock selection and investment theme strategies.”
