If you’re looking for a job in UK asset management, a new report from UBS offers some pointers on where to focus your efforts. Basically: equities.
As the chart below, taken from the report, shows, equities funds are expected to experience the biggest inflows in 2016. By comparison, outflows are expected from fixed income and property funds.
Where the assets will be allocated in the UK in 2016
It’s not all good news for equity fund managers in 2016, however. Recent history suggests that over 50% of the assets flowing into equities funds will be managed passively – suggesting there won’t be any real advantage for equity fund management jobs anyway. On this basis, you’ll be better off working for multi-asset or alternative funds over the next 12 months.
Active/passive split by asset class in 2016
UBS’s analysts also have something to say about the fund management firms you might want to work for. Their favourite is Schroders – “well-diversified from a product and distribution perspective.” Their least favourite is Aberdeen – “all 8 of its equity strategies have underperformed their benchmark over the past 3 years.” Beware Jupiter – “more than 95% of fund inflows over the past 3 years have been concentrated in just two of its funds with 75% coming from a single fund.”
In the first half of 2016, Aberdeen (ADN) and Ashmore (ASHM) are both expected to see their funds under management contract. By comparison, Man Group (EMG), Jupiter (JUP) and Schroders (SDR), are expected to grow.
Asset Under Management growth estimates by fund