Australia

Wraps and platforms continue their dominance in this mature market. Although the opportunities in Australia look impressive for new players, based upon new mutual fund inflows and the healthy superannuation environment, potential entrants have to understand it is a highly competitive, well –established market and gaining representation on the platforms is difficult, especially for smaller brands. Once there, representation alone does not translate into inflows.

Europe

Again, platforms are building a dominant role in this market with the ongoing growth of players such as Skandia, Allfunds Bank and FundQuest. Generically speaking, banks will dominate mutual fund distribution with model portfolio and multi-manager solutions offering SICAVs to wholesale distributors. The exception is the UK which still runs to its own rules with unit trusts, Group 1 and Group 2, 36,000 IFAs and a suite of ‘legacy’ products guaranteed to turn even the most patient Ops director grey. HM Consulting recently concluded a project for a French platform assessing international expansion opportunities.

India

Holly was very privileged to spend 3 months in India, from October 2006, doing some voluntary work for a charity and also conducting research into the local asset management businesses and opportunities. Although the markets are volatile and embryonic, they are tremendously exciting and the potential for Indian financial services over the next 10 years is staggering. As well as domestic growth, the opportunity for Indian asset managers to export product into markets including the US, Australia and Europe is huge. On the other hand, a relationship with these groups will provide international manufacturers with a valuable head-start in this nascent market. Although some time off, the opening up of the Indian pensions market and the role for asset managers and platforms represents an amazing opportunity.

In the shorter-term, it is our strong belief that we need to take a more individual view of the various components that are somewhat lazily bundled together as Emerging Markets. India and China are both fascinating stories but the detailed dynamics and drivers of these countries and markets are very different.

In Q208, New Star launched their India fund which is effectively sub-advised by HM Consulting’s clients Tata Asset Management.

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