Bank defections

Rapid expansion in the late 1990s has left many banks and insurers with high cost bases, a situation that could soon result in some institutions selling their fund management operations.

But as the banks feel the pinch and report below-target revenue growth, many asset managers have been busy building up their operations, as evidenced last month when New Star Investment Funds launched a high-yield bond fund, marking the firm’s first foray into the fixed-income market.

Last month also saw