Meeting the challenges

Fund managers are facing tough times as investors make more discerning demands and choosing funds becomes more complex

The past six years have been challenging times for traditional fund management houses. The end of the bull run resulted in significant falls in asset values that materially dented the profitability of investment houses. Indeed, many were plunged into significant loss-making positions. In addition, the falls in asset values battered the confidence of investors. Individual investors saw the value of their technology funds plummet and losses on many general funds followed for three years. Pension funds were overexposed to equities. This and changes in accounting practices pushed pension fu...