NextWealth: Asset managers will need to be 'cheap or exceptional to secure flows'

Cost-saving measures encouraged

Asset managers will need to be "cheap or exceptional to secure flows" in the future, according to a new report by NextWealth, unless they are part of a vertically integrated model.

The research firm said the threat for asset managers that are not part of vertically integrated groups is related to flows and pricing, with UK fund flows "on the verge of a massive shift… concentrating to a shrinking number of funds", and the rise of vertically integrated business models is leading to pricing homogeneity. The report, Shape of Flows; Retail assets today and future flows, revealed most of the positive flows outside of vertically integrated models are the rebroking of assets for lower fees, much of which is done through segregated mandates or strategic partnerships on an i...