Fund distribution through private banks is set to increase significantly during the next 12 months, according to research from a survey of 47 European asset managers, administrators and promoters undertaken by KNEIP, a service provider to the asset management industry.

The survey found that 42.9 per cent of respondents planned to use private banks more, up from 14 per cent in 2010.

Additionally 34.3 per cent of respondents said they expected to focus more on direct sales, an increase of 14 per cent year-on-year, while 31.4 per cent planned to use proprietary channels, special in-house agreements within banks, up 26 per cent in the last 12 months.

Other findings included: 94 per cent of respondents cited that UCITS IV would have the most impact on the fund management industry in the next 12 months, up 83 per cent from last year.

“The rise in private bank distribution channels suggests that some asset managers are increasingly targeting high net worth individuals as the recovery from the financial crisis stabilises,” said Bob Kneip, chief executive of KNEIP.

Regarding regional findings, global investors are increasingly looking to invest in South America and Australia, according to the KNEIP survey.

While Europe remains the main market for investor demand, with 74.3 per cent selecting this area as a focus, it has decreased by 9 per cent from last year.

“Developing markets, such as Brazil and Chile, offer a relatively untapped source of emerging wealth, with GDPs increasing by about 10 per cent in the last year. Australia also represents a huge market opportunity as a hub for product exportation to Asia. This coupled with local regulatory changes which have opened up these markets for non-domestic funds in recent years make these huge growth opportunities for asset managers moving forward,” said Kneip.

The survey was conducted during a four-week period in April 2011.