Rehabilitating UK equity release
Almost a dirty word following mis-selling incidents, equity release in the UK has experienced something of a renaissance in recent years. 2016 saw lending increase by 34% to pass £2bn for the first time, and Q3 2017 surpassed £800 million – the first quarter exceeding that figure and an increase of 18% on the […]
Read more...Why Fidelity’s fulcrum fee model is more radical than it looks
The market reaction to Fidelity’s introduction of a “fulcrum” management fee model in its UK fund range from March 2018 has been – well – a bit underwhelming so far. Objections have included that base management fees are not changing much, that total fees are still too expensive, especially if the fund underperforms, and […]
Read more...Streamlined insurance distribution: a digital success story with lessons for wealth
The UK has a vigorous and innovative insurance industry which often leads its wealth and asset management peers in delivering customer value. The growth of streamlined insurance specialists using the digital channel to cost effectively distribute products and assistance is a notable success in its own right, and provides lessons for wealth and asset management. […]
Read more...Bottom line vs triple bottom line: making ESG more sustainable
The role of Environment, Social, and Governance (ESG) factors in investment strategy is growing, with the Global Sustainable Investment Alliance sizing the responsible asset management market as $23trn at the start of 2016. This represents a growth in AUM of 25% since 2014. In our institutional asset owner insight programs, we see an increasing number […]
Read more...DC pensions: growth is coming; what about revenues and profit margins?
In our launch edition, we looked at how big increases in minimum contribution rates for DC pensions are likely to produce a DC pensions flow opportunity of >£20bn pa by 2019. Thanks to the structure of auto-enrolment and member inertia, fast growth in DC pension assets is largely assured. By 2020, we estimate there will […]
Read more...DC pensions: opportunity and challenges as AE turns flows into a flood
The UK is experiencing a pensions revolution at a speed with little precedent globally. Two of the three main components are playing out already, and the third is about to do so: Closure of defined benefit (DB) pension funds in favour of defined contribution (DC). Pensions freedoms, which have upended annuity markets in favour […]
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