Investors are likely to switch from expensive funds into those with more competitive fees in the next two years, according to a survey of 100 institutional investors and wealth managers.
Out of this group, a third think there will be a dramatic switch and just over half think there will be a slight increase.
Levels of reporting and transparency are also expected to figure more strongly among investors, with 42% of those surveyed anticipating a dramatic increase in investment outflows from funds with lower quality reporting and a further 32% believing there will be a slight increase.
Institutional investors, wealth managers and family offices to demand greater levels of transparency and reporting from the fund managers they use, 94% of survey respondents said, with 77% saying the focus they place on trying to reduce fees will also increase.
The survey was commissioned by Global Palladium Fund (GPF), which says its four ETCs listed on the London Stock Exchange and Xetra are the first in the industry to use blockchain technology to record bar information into distributed ledger technology.
Alexander Stoyanov, chief executive officer of GPF, said: “There is a growing number of funds available to investors, who at the same time are becoming more sophisticated in what they want from fund managers. Having very competitive fees and high levels of reporting and transparency are now just as important for fund managers to have as their stock selection and investment theme strategies.”
He noted that GPF’s four metal exchange-traded commodities have the lowest charges in Europe.
The ETC are all marketed and distributed by NTree International, whose chief executive Timothy Harvey said he expected blockchain to become a key part of the proposition for all successful fund managers in the near future.
“The technology can dramatically enhance every aspect of a fund manager’s business from trading to reporting and meeting regulatory requirements.”