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16 May 2012

FN: Carmignac reduces euro exposure to zero [RDR]


Speaking at a launch event for the new London office of the French multi-asset fund manager, Carmignac Gestion, Edouard Carmignac said that the RDR had made it an auspicious time for firms such as his to enter the UK market.

Carmignac Gestion will be targeting both retail investors and institutional clients in the UK, and distributing through private banks and fund platforms, he said. Carmignac added that the UK's Retail Distribution Review, a major regulatory overhaul of the mutual funds market due for implementation from December 31 this year, made it an auspicious time for a firm like his own to enter the market.

Carmignac said: "We have naturally been following the RDR very closely, not only because it will obviously affect our UK launch but because it has repurcussions on the continent too".

The EU is also contemplating reform of the continent's retail funds market, along similar lines to the RDR - obliging independent financial advisers to disclose their fees to end-investors separately from the fees charged by fund managers. Carmignac added: "We have been adapting our processes to this new structure; clearly the change creates opportunities for an independent firm like ours. On the continent, most of the assets lie in the control of the large banks, who of course try to sell their own wares first. The key for us is that retail customers get access to the best funds on the market, and understand what they are being charged for."

But Carmignac Gestion is against one idea mooted by the Commission: banning commission payments by fund managers to IFAs altogether. It argues this would have the opposite effect to that intended; it would strengthen the hand of continental banks' in-house financial advisers, and favour the recommendation of mutual funds run by banks' own asset-management subsidiaries, at the expense of independent firms.

Full article



© Financial News


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