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Amazon a prime threat to fund managers, analysts warn

Bernstein analysts say a foray into asset management by the online retailer is most likely to occur in the form of fund distribution or robo-advice

Amazon a prime threat to fund managers, analysts warn
Photo: Getty Images

A move by the tech giant Amazon into selling mutual funds would spark a price war that could slash asset managers’ profit margins — already under pressure — still further, analysts have warned.

Amazon is “well-placed” to move into selling funds to retail investors, said analysts at the research house Bernstein in a note published on July 24 — thanks to the roughly 100 million people who subscribe to its flagship Amazon Prime service.

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