30 May 2017 Spring has sprung…
...and hope springs eternal
We ran the spring sentiment survey in the last week of April (we waited until after the first round of the French presidential election on 23rd April) until mid May.
In all, there were 84 responses. Fund groups represented 62%, platforms 25% and distributors 13%. The audience was mainly British (77% ) and the rest cross-border.
Economic recovery has been gaining ground in the UK, Europe and the US. Despite geopolitical uncertainty, investor sentiment improved, optimism was in the air and there was a strong uptick in business volumes.
However, caution underpinned everything. The open comments were more restrained and measured than the answers given to multiple-choice questions. This reflects sales patterns since the start of the year. Though Q117 is one of the best on record, there has been a particularly heavy allocation to fixed income.
In summary, over the next 12-18 months fee pressure, crumbling margins and the rise of passive/robo loom very large on the horizon. As does a very expensive MiFID2 exercise.