Bullish fund management execs forecast surge in money growth

 
Michael Bow
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THE FUND industry predicts growth of new cash flowing into products will nearly double to nine per cent every year for the next five years, an upbeat survey suggests.

The bullish assessment says net new money growth will improve from the current rate of three to five per cent annual growth to reach nearly 10 per cent a year between now and 2019.

The poll, from EY, represents responses from nearly 30 per cent of the regulated fund industry’s assets, such as Undertakings for Collective Investment in Transferable Securities (Ucits) funds in Europe.

“It’s clear that managers of regulated funds are feeling pretty bullish,” EY global wealth and asset management leader Mike Lee said.

The increase in fund regulation across Europe is also having an impact on the funds industry, with 56 per cent of respondents in Europe saying regulatory shifts had changed their pay structure, versus just five per cent of American fund managers.

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