Concentration risk is not only fuelled by greater flows of investor money into a fewer number of funds, but multiplied by a greater flow of money into fewer funds-of-funds.
As platforms and international life companies also offer access to these similar-looking multi-manager propositions, as BlackRock’s Tim Hodgson argues, they will soon have to compete not on their investment proposition but on educating IFAs to spot the difference between these investment propositions.
In his interview with International Adviser, Hodgson explains why this whole education process could be something that the life companies focus on for the next few years – and could up ‘owning’.
