| Date post: | 17-Jan-2016 |
| Category: |
Documents |
| Upload: | virginia-shields |
| View: | 219 times |
| Download: | 0 times |
In-depth. Informed. Independent.
Copyright OBSRCopyright OBSR
Money Marketing
Fund of Funds Invitational, Glasgow
Fund of Funds – The State of Play
Nigel WhittinghamDirectorOld Broad Street Research
25 June 2009
Copyright OBSR
In-depth. Informed. Independent.
Growth in assets under management over the past 5 years (March 2005 – March 2009)
Source: IMA
Percentage Growth
“External” Fund of Fund Assets 98%
Total Funds 23%
External Fund of Fund’s 4% of Total Funds
Copyright OBSR
In-depth. Informed. Independent.
How have they performed?
% of annualised compound return
IMA SectorAverage of OBSR Rated
Funds
Sector Average
Outperformance
Active Managed 4.75% (7) 3.70%
Balanced Managed
6.04% (6) 3.62%
Cautious Managed
4.82% (5) 2.14%
Global Growth 5.03% (5) 3.87%
Performance over 5 years (31.5.04 – 29.5.09)
Source: Hindsight
Copyright OBSR
In-depth. Informed. Independent.
Is the rationale for fund of funds still valid?
IFA investment needs
Source: Research for a major investment manager and a major life and pensions provider
Copyright OBSR
In-depth. Informed. Independent.
Is the rationale for fund of fund’s still valid?
Do they meet the needs of “new model advisers” and “wealth managers”?
– Move away from “product” to “service”
Do they offer enough risk profiles for clients looking for a “one stop” solution?
Do they still provide a solution to the regulatory challenge faced by advisers?
Stability of teams?
Copyright OBSR
In-depth. Informed. Independent.
The new competition
Risk based models (stochastic tools combined with guided architecture)?
Model portfolios?
Risk based OEICs plus risk assessment tool?
“New style” managed funds?
“Distributor influenced funds”?
Copyright OBSR
In-depth. Informed. Independent.
Different approaches and innovtion
UCITS III and NURS impact
OBSR categorisation basis
Asset allocation – Fixed or active
Return bias – Relative, absolute, target
Asset Allocation
Return bias
Relative Absolute Target
Fixed Traditional Innovation
Active Traditional Innovation Innovation Risk based models
F&C Lifestyle funds
Skandia
Copyright OBSR
In-depth. Informed. Independent.
Different approaches and innovation
Are they really funds of funds?
Percentage of assets invested in funds
From 27% to 100%
Copyright OBSR
In-depth. Informed. Independent.
In-depth. Informed. Independent.
