The majority of fund managers taking part in a recent survey said they expect charges to decline.

Over the next five years, 14 per cent of fund managers expect charges in their industry to fall dramatically, with a further 60 per cent expecting them to decline slightly, according to research from events agency FIRST.

The decline is largely expected to start now, with 64 per cent anticipating charges to be lower in 12 months’ time, according to the survey of 52 fund managers.

As for industry sectors believed to see large inflows over the next three years, one in five fund managers predict exchange-traded funds will see a “dramatic” increase in the level of funds invested between now and 2019, and a further 60 per cent expect a slight increase here. The corresponding figures for smart beta strategies are 14 per cent and 47 per cent. 

As for hedge funds, only 24 per cent expect these to boost their assets under management, compared to 60 per cent who think they will see a fall. Meanwhile, there appears to be a rosier outlook for emerging markets, with 52 per cent of respondents expecting assets under management here to grow between now and 2019 compared to just 16 per cent who think they will fall. The corresponding figures for emerging market debt are 44 per cent and 18 per cent.

“There is considerable change taking place in asset management at the moment, and this has contributed towards us seeing an increase in the number of events and conferences we organise for the sector. The need to network and meet clients and business partners has increased,” said Mark Riches, managing director of FIRST in the UK.

“Indeed, over the next 12 months our research shows that 21 per cent of fund management professionals intend to go to more industry events, compared to 15 per cent who plan to go to less. Of those attending more, 80 per cent said they will do this because with so much change taking place in the industry, it can be a good way to share thoughts and views.”