The Belgian funds market uncovers its concerns and opportunities in our B2B research. What is the impact of regulations for the funds market according to fund experts? 63% of the participants fears that the evolution of regulations and laws over the coming two years will pose a medium to large threat to the asset management sector.
We mostly regard the new regulations as an opportunity, says Marlne Hassine Konqui, Head of ETF Research at Lyxor ETF. After all, they increase the need for transparency. We see this as a starting point to increase the share of passively managed funds in investment portfolios, because they respond exactly to the need for further transparency and lower costs.
The European ETF market
In Europe, today, passively managed funds or ETF?s represent 16% of the asset management industry. Marlne Hassine Konqui believes this share will increase. Passively managed funds offer both investors and the fund industry a beautiful opportunity to reduce the total operational costs of investment portfolios. The competition between actively and passively managed funds is positive for the development of an investment portfolio. It encourages active fund managers to really focus on profit, and at the same time, it offers investors access to ETF?s when the performance of active fund management fails.
ETFs are an interesting alternative for investors. Thanks to their profitable cost structure, they lower the management costs of the portfolio.Marl?ne Hassine Konqui
Active + Passive
Every quarter, Lyxor publishes a study on the performance of over 6,000 active funds registered in Europe. It is intended to help investors in their choices related to the development of their portfolio. On average, annually, 35% of the active asset managers performs better than their benchmark. Marlne Hassine Konqui explains: That figure is also one of the reasons why passively managed portfolios are so popular and why their success will increase in the future. We are convinced that a combination of both active and passive portfolio management, on top of the appointment of the assets, is a determining factor in achieving good profits.