Traditional assets shunned as managers eye ESG

Asset managers also flagged challenges with investing in alternatives, however. More than two thirds (67 per cent) said they faced challenges in structuring new alternative products, and just over half (53 per cent) agreed the speed of their alternative product development was a barrier to entry.

Jason Hollands, managing director at Tilney, said asset managers looking to launch alternative, ESG or multi-asset funds “did not surprise” him as it was “more of the same”.

He added: “The bigger issue is whether there will be many new product launches at all in 2020 given the current, challenging economic climate. 

“It just might be the case we see more fund closures than launches, as firms take a closer look at their cost lines and rationalise their fund ranges.”

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