The respondents, an assortment of fund groups with substantial UK operations, overwhelmingly believe that major headwinds, such as Brexit, increased regulation and the ongoing threat from passives will hamper the industry’s profitability in the near-term.
However, 69% of the group admitted they would probably be pushed to launch their own passive products and 54% said the success of the passives industry would mean less assets under management for active managers.
Of the regulatory headwinds, Brexit was deemed the biggest threat to the future stability of the fund management industry, followed by MiFID II.
Fifteen percent of respondents said the UK’s separation from the EU would be “deeply damaging” for the industry.
And 54% of those polled judged Brexit and the introduction of the MiFID II framework next January would negatively impact the sector.
Thirty-one percent of the surveyed group remained neutral on Brexit’s impact for asset managers moving forward.
