02 Oct 2018 The Essential Guide to the UK Fund Distribution Landscape
The UK fund industry is the largest domestic and most dynamic fund market in Europe with assets of £1.2trn (June 2018). Fund groups from all over the world arrive in the UK to sell their funds, but find it difficult to gain a foothold. On the surface the distribution opportunities seem substantial, but the landscape is complex, multi-layered and advice-driven and fund groups will need multi-channel strategy to succeed.
How big is the size of the pie? UK household financial wealth stood at £6.7trn at end 2017 — a significant household average of £245k. However, 55% of this wealth is held in pension reserves and over time the average household wealth is set to fall owing to a combination of higher living costs, the disappearance of defined benefit schemes and the UK’s historically low savings rate.
Bella Caridade-Ferreira, CEO of Fundscape said, “The long-term outlook for household wealth might be modest, but distribution prospects are much more optimistic. More than half of household wealth is captured in pension entitlements and most of it isn’t in investment funds. We expect a significant proportion of this wealth to transfer into the wealth management industry over the next 10 years.”
Beneficiaries of the trend will be platforms and the advice channel. Advisers are a boon to the industry, but they also represent an existential threat since they compete directly by gaining discretionary permissions, launching funds and model portfolios and even their own platforms. From being reliant on fund groups, life companies and platforms as they were in pre-RDR days, they are now very much masters of their own ecosystems.
Published in Q318, the Essential guide to the UK fund distribution provides fund groups with comprehensive information on the size and scope of the market, the lowdown on wholesale and customer-facing channels, details on professional fund buyer preferences, leading distributors and more.
To view the executive summary and the table of contents click here.
Notes to editors:
About Fundscape: Fundscape is a research house specialising in the end-to-end research and analysis of the UK fund industry. It is the publisher of the quarterly Fundscape Platform Report, which is widely regarded as the industry source and benchmark for platform assets and flows in the UK. Its staff are well placed to provide unique insight into asset management and distribution trends, including product development, distribution and marketing.