The GBAM said the RDR presented a solid long-term opportunity, but noted that the growth of guided architecture propositions by large asset managers might be restricting investor choice and diversity through offering smaller selections of lower-cost funds.
GBAM was encouraging fund selectors to look further afield and unless they considered specialist asset managers with higher-performing, niche products they would fail to offer investors sufficient choice.
The collective, established in April 2013 is made up of 15 European member firms, including latest additions RWC Partners, First Avenue Investment Management, Argos Investment Managers, Van Eck Switzerland, Victoire Brasil Investimentos and Zeal Asset Management.
Meanwhile, the group said Ucits was “losing its way as a global brand” and would likely become replaced by local passports, which it said was the result of a growing trend for constant change in Europe, sparked by the banking crisis.
While larger players could absorb continuing charges under the Ucits regime, the smaller players were less privileged.
It added that in Asia, local managers were actively encouraging local passports in order to avoid the issues in their territories being generated by regulators in Europe, but these were in turn seen as an additional hurdle by the European managers due to the associated costs.
GBAM chairman, José Luis Jimenez said: “There remain a number of challenges from competition, the increasing burden of regulation and from the global economy all of which is encouraging boutiques to seek new business globally rather than in their own backyards.
“We would like to encourage this development and see a common approach to passporting around the world but while Ucits had the potential to become the global brand, constant change to the Ucits regime has encouraged other jurisdictions to start pursuing their own, less onerous, local solutions – a development most advanced in Asia.
“From a European perspective this is not a positive step as it increases the cost of undertaking business in the region, but from an Asian perspective, one can see the benefits of a local passport to local firms.”
