The fund selection process is evolving

Te extra mile. This is the title of Expert Investor’s article about the evolution of the fund selector process. The increasingly long-term low rate means risk assets are returning less, which has led to strong downward pressure on costs, hitting both managers and buyers. For the fund buyers, one of the results has been move away from expensive and admin-heavy open architecture back to controlled limited client offerings. And that altered the relationship between the fund buyer and fund manager. Gabriele Miodini, Eurzion’s Head of Sales & Client Management, believes distributors must think harder and longer about finding the best solutions for individual clients. “Investing has become polarised. People have a more passive allocation to core asset classes and a more active allocation to specialized asset classes where a manager can add value. We’ve been focusing on three or four asset classes that meet the clients’ needs and fit within this market environment where people are looking for yield”. Furthermore Miodini hold to be true personal relationships are as important as ever. “Take a head of fund selection of a big company, who works with 80-90 fund managers and 200-250 funds […] if you don’t know them, they will never give you any time to talk.”
 
“The extra mile” - Expert Investor, November/December 2019