“
36
FEATURE FUND LINKS FORUM 2008
Multi-manager
funds are typically
less volatile than
single manager
funds because
of their inherently
diversifying nature
Distribution stream
Katie Neale,
Invesco Asset
Management
”
David Morrow,
Fortis
l Distribution stream
Katie Neale, regional sales
manager, Invesco Asset
Management
Neale outlined the opportunities
that exist for life
companies in today’s tough
markets. She focused on
the benefits of diversifying
businesses regionally,
highlighting that sales of
Ucits funds had grown in
Asia, the Middle East and
Latin America while they
were dropping in Europe.
She also highlighted
that regular premium business
was increasing in the
Middle East and said the
emergence of Shariah-compliant
Takaful insurance
presented further opportunities
for life companies.
Neale noted the importance
of banks as a distribution
channel in the region,
noting that they were forecast
to account for twothirds
of financial product
sales in the near future.
David Morrow, director of
UK insurance asset management,
Fortis
Morrow described how
business opportunities
were being missed due to
a lack of understanding
between the different processes
and systems operating
in life companies and
fund houses. He said the
use of different terms to
mean the same thing created
confusion and so could
the processing of business.
Neil Bridge,
Schroders
Sales of Ucits funds by region
€bn
Christopher Cade,
Baring Asset
Management
30
20
10
-10
Asia
Europe Latin America Total
*To May ’08. Source: European Fund and Asset Management
Association, Invesco
0
’07
’08
Morrow added that
sharing market intelligence
would also foster closer
relationships between the
companies.
Neil Bridge, head of UK sales,
Schroders
Bridge explained how business
models had changed
since the late ’80s, a time
when there was direct contact
between fund managers
and end clients, in addition
to through IFAs and discretionary
asset managers.
He described the current
model as one where
there is little or no direct
relationship between fund
houses and retail investors
and where there was
a new intermediary in the
form of wholesalers such
as wrap platforms, as well
as more tied advisers.
In this environment,
Bridge suggested that the
winners were those that
spent the most on adver-
Simon Ellis, Fidelity
International
INTERNATIONAL ADVISER [www.international-adviser.com] OCTOBER 2008
tising and marketing. He
added that closer collaboration
with distributors
such as life companies was
also needed.
Christopher Cade, director
of mutual fund sales, Baring
Asset Management
Cade emphasised the
importance of life company
sales people having good
investment knowledge
when it came to generating
new business. He said
advisers tended to be more
loyal to salespeople who
could offer them something
more than just a product,
be it purely a wrapper or a
fund investment.
Turning to thematic
investment as an important
trend in distribution,
Cade said advisers and
their clients tended to latch
on to the ‘next big thing’
in investment, so it was
important for life companies
to get products that
John Croft, HSBC
Global Asset
Management (UK)
Simon Ward,
New Star Asset
Management
were in this space on their
platforms quickly.
He highlighted a number
of investment trends for
the next decade, including
‘feed the world’ – agriculture,
water and transport;
‘volatility’ – currency,
bond markets and absolute
return funds; ‘Western
poverty’ – cheap entertainment
and industries such
as pawnbroking.
Simon Ellis, managing director,
multi-manager, Fidelity
International
Globally, assets under management
in fund of fund
and manager of manager
funds more than trebled
between 2001 and 2006, to
$1.68trn, Cerulli Associates
figures show.
Ellis pointed out that
fuelling this growth in
demand for multi-manager
has been an “explosion”
in the use of open architecture
platforms, which
have bewildered advisers
and consumers alike with
choice, along with investor
desire for “a smoother
investment journey”.
Multi-manager funds
are typically less volatile
than single-manager funds
because of their inherently
diversifying nature.
Nevertheless, noted Ellis,
there remained a broad
risk continuum in the
multi-manager space,
which he said ranged from
the safest and most defensive
but sometimes dis-
John Lester,
Neptune
Investment Mgt
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