Financial publisher Citywire today has published views from a number of Independent Financial Advisers commenting that advisers think the merger of Standard Life and Aberdeen Asset Management will benefit clients if it begins changes across the asset management market. The two asset managers confirmed plans for a merger worth £11 billion on Monday 6 March.
Stephen Girling, SG Wealth Management’s Managing Director, said the
merger indicated the UK asset management market would shift towards a model where a smaller number of big businesses dominated.
“I think if there is going to be a need to cut costs, just like the mid-sized insurers who disappeared, we are going to see that with the investment houses going forward”, he said.
However, he said a reduction in the number of funds available would benefit investors by forcing asset managers to offer specialist propositions.
“It reduces choice but if you think of the number of active managers you have got and most of them have their UK equity income funds broadly doing a similar job. I think perhaps less choice in that space will leave those who are more specialised offering something a bit different” he said.
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