RDR fund volatility warning

Fund groups have warned the RDR will lead to increased volatility in fund flows and a greater share of assets going to a handful of the larger asset managers.

According to the IMA's annual fund management survey, a number of groups believe the impact of the RDR - which is likely to increase platform-based distribution and accelerate the use of guided architecture models - will have "profound consequences" for fund flows. Groups say the increasing use of asset allocators making investment decisions on behalf of advisers could lead to millions of pounds entering or leaving funds at any one time. One respondent says the RDR-led shift towards investment outsourcing will unquestionably increase the volatility and velocity of assets. "It is qu...