Fund managers eye bumper inflows over next five years - survey

LONDON, July 6 Sun Jul 6, 2014 6:01pm EDT

LONDON, July 6 (Reuters) - Fund managers across the globe are optimistic about attracting more investors over the next five years, a survey by consultants EY showed, while also indicating that some managers are starting to feel the pinch from regulatory pressure over pay.

EY's "Global Regulated Funds Survey 2014" showed managers in North America and Europe expected growth of 10 percent a year in net inflows, while those in Latin America and Asia expected growth of 7 percent a year.

"When you recognize that relatively recent net new money growth rates for the overall industry have been in the range of 3 percent to 5 percent, it's clear that managers of regulated funds are feeling pretty bullish," said Mike Lee, Global Wealth Asset Management Leader at EY in a statement.

"To hit this growth rate, managers are looking to tap into investors' search for yield in the on-going low interest rate environment," he added.

The survey also found that European managers are increasingly seeing their pay packages tweaked to align them with the interests of investors.

Fifty-six percent of European managers said regulatory changes had the greatest impact on their compensation structure or methodology, versus 5 percent of North American managers and 13 percent of managers in Asia and Latin America, it said. (Reporting by Simon Jessop; Editing by Mark Potter)

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