Client service, thought leadership, lower fees and alignment of client interests were the most important characteristics for investors when considering partnering with a boutique asset manager, according to research carried out by Censuswide on behalf of Nedgroup Investments.
Nedgroup Investments commissioned Censuswide to survey 204 professional investors including IFAs, wealth managers and fund selectors on their relationships with boutiques.
Overall, 37% of respondents flagged ownership and structure, risk management (33%), profitability (32%) and infrastructure (30%) as risks they associate with boutiques.
See also: House of Lords criticises FCA’s application of cost disclosure rules for investment trusts
Of the respondents, 39% said that they used a boutique manager only, while 19% used both, and 38% said a large manager.
Tom Caddick, managing director, Nedgroup Investments, said: “We understand that there is a need for both larger asset management firms, and boutiques. What was interesting for us was to find out where our clients were looking to use each type.”
There was no strong preference for either a boutique or a larger manager across both fixed income and equity funds.
Across an average of the fixed income categories, 39% of respondents said that they used a boutique manager only, while 38% said a large manager and 19% used both.
Within equity and multi-asset funds, boutique asset managers were the favoured vehicle for those investing in US (44%), European (41%) and Asia ex-Japan equity funds (43%), as well as Japanese equity funds (44%). Boutique asset managers also prevailed when it came to multi-asset (45%) and property (44%).
See also: Strong eurozone growth paves the way for June rate cuts
