Market Watch

Dachfonds are secret of Austrian success

Austria’s E91bn mutual fund marketplace is a beacon of prosperity in Europe’s bleak financial landscape. The Austrian market has grown 10 per cent in terms of retail assets under management since the end of 2000, according to global research house Cerulli Associates. This compares with a collapse in the German retail fund market of 8 per cent in 2002 alone. Steven Irving, editor at Cerulli, put Austria’s success down to heavy exposure to fixed income and the fact that a significant proportion of the market is invested in funds of funds, called Dachfonds. Leading foreign players in Austria include Alliance Capital, DWS Investments, Fidelity and JP Morgan Fleming. At year-end 2002, roughly 1856 local funds existed in Austria, along with another 280 cross-border funds domiciled in Dublin or Luxembourg, according to Cerulli. The total number of funds has shot up from 627 in 2000.

Funds Forum to focus on distribution strategies Key issues in fund management, including distribution and profitability, are topping the agenda of the annual ICBI Fund Forum scheduled for June 25-26. A special distribution summit will follow on June 27. The event, to be held in Nice, will also tackle marketing techniques, investment strategies, cost efficiency moves and outsourcing. High profile speakers include Fidelity’s president, Thomas Balk, Jeffrey Peek, chief executive of Credit Suisse First Boston, and Putnam’s head Lawrence Lesser. Mr Lesser will give a talk on how to adapt the asset management business to the needs of long-term investors. Mr Balk will chair a panel session discussing what value the investment industry has delivered and propositions for the future. The conference includes special streams on opportunities in France and Germany. All delegates will receive the latest issue of PWM. For further information call ICBI on +44 (0)20 7915 5103 or visit www.icbi-fundforum.com.