We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".

Continue

News/Analysis

Twitter board

Follow us
  • To read LGIM's take on alternative credit click here: https://t.co/UeMKBQuKmd https://t.co/HqpKasST687 days ago
  • Climate change, #MeToo, plastics: ESG in 2019 might sound like a repeat of last year but that is where the similari… https://t.co/JfbVlSHXvs8 days ago
  • Have you seen our latest property roundtable? Click here to read more: https://t.co/Brd4QkMsNk https://t.co/EleMsa1HZz35 days ago
  • Has the direct lending market become a victim of its own success? Read more here: https://t.co/55jXOQqnCr… https://t.co/3rDYQhcbgX38 days ago
  • Have you seen our latest roundtable? An investor sits down with fund managers and advisers to discuss real estate's… https://t.co/DZqJFjnCxP43 days ago
  • Decision-makers at key pension schemes share their views with Mona Dohle on how to pick the right manager and wheth… https://t.co/ZGCHhJMJCu45 days ago
  • Read our latest interview with Mark Mansley, chief investment officer of Brunel Pensions Partnership here:… https://t.co/0fKgRopmsW52 days ago
  • "ESG is a hot topic among investors, but it appears that trustees are yet to catch on. Mark Dunne takes a look at t… https://t.co/pKGoquOCMk58 days ago
  • "@BNPPAM_COM is launching a sustainable SME funding strategy to boost the economy and help investors escape the low… https://t.co/clDIoHPo6P64 days ago
  • "Pension funds, as long-term investors, could find themselves exposed under many of the potential future scenarios… https://t.co/d37su2PwsD65 days ago
  • As LDI strategies are gradually being replaced by CDI approaches, how are pension schemes managing the additional r… https://t.co/rlMnrBmr1d66 days ago
  • Emerging market debt is rapidly becoming a local currency market, but investors are still nervous about a US rate r… https://t.co/3coGF5Dq8n77 days ago
  • Have you seen our latest roundtable? We brought fund managers, consultants and trustees together to discuss emergin… https://t.co/BMLta4c9pm80 days ago
  • Does the turbulence hitting stock markets at a time of rising bond prices mean it is time to ditch multi-asset fund… https://t.co/GiSdFpE01N86 days ago
  • More and more pension schemes are increasing their allocations to private equity, but will the illiquid strategy br… https://t.co/8l8TI75r9v92 days ago
  • Border to Coast Pensions Partnership CEO Rachel Elwell tells Mona Dohle about the challenge of developing a common… https://t.co/nQZfFveQdz93 days ago
  • Out now- The portfolio institutional October issue featuring our cover on ESG and fixed income: Breaking new ground… https://t.co/hnmwYclXS594 days ago
  • Friday View: ESG in fixed income: The new frontier - LGPS bolster infrastructure collaboration - EM Roundtable: The… https://t.co/zxvEKaZkoM97 days ago
  • Local government pension scheme (LGPS) pool Border to Coast has appointed the first external managers for its £1.2b… https://t.co/eBAbx0ubzJ97 days ago
  • "Investors seduced by the impressive growth forecasts for emerging market economies should prepare themselves for a… https://t.co/7nAnrL8s7t98 days ago

Pensions

Europe’s fund managers ready for Brexit – former Efama president

Europe’s fund managers ready for Brexit – former Efama president

Mona Dohle
Wednesday 3rd October 2018

The UK leaving the European Union will have a limited impact of the continent’s fund management industry, a former president of the European Fund and Asset Management Association (Efama) believes.

Alexander Schindler told portfolio institutional that despite the current deadlock in the negotiations he expects Theresa May to sign a provisional exit deal with Brussels before the end of November.

Schindler, who was president of the association representing Europe’s fund managers until 2017 and still sits on its board, said most asset managers are ready for the UK’s departure, having made arrangements for many scenarios.

“The Financial Conduct Authority and its European counterparts are well aware of the potential risks associated with a no-deal Brexit and will continue to provide an environment where the existing regulatory framework remains in place until at least 2020,” he added.

Indeed, a survey by accountancy giant Ernst & Young confirms that more than a third of financial services firms in the UK are relocating part of their operations to Europe, with up to 57% of front office roles affected.

Yet Schindler argues that the operational effects for the end-investors, including pension funds, will be limited and that the main risk would be volatility in the capital markets. “The main dangers for pension funds could come from areas such as forex volatility, but the more we talk about a de-valuation of the pound, the less likely it is going to be because people are already positioning themselves,” he added.

According to Efama’s latest monthly asset management report, the UK remains Europe’s largest asset management market, accounting for 35.4% of all assets managed across the continent. This, according to the Investment Association (IA), means that £7.7trn of assets are managed from the City. Almost of a third of these assets (£1.8trn) are owned by European investors.

Chris Cummings, chief executive of the IA, argues that this underlines the importance of signing a Brexit deal. “The clear value the European market brings to the UK asset management industry underlines the urgent need for a Brexit deal to be completed by March 2019 which protects our industry, and more importantly, the savings of millions of people across Europe.

Schindler added that the City will continue to be the City no matter what the terms of the exit are. “Whatever the outcome of the Brexit negotiations, Europe will depend for quite some time on sourcing financial resources from the UK,” he said. “You don’t build up something like the City of London overnight.”

0

Leave your comment

View our comments policy

Please login or register with us to leave a comment. It's completely free!