Some of the world's largest investment managers have warned that the new age of increased transparency and simplicity in fund management products, demanded by clients and regulators alike, will pull down returns and prevent innovation in the sector.

Accountancy KPMG met with some 17 investment managers responsible for a combined $6.5 trillion (€5.2 trillion) in client assets, and found that investors' thirst for transparency and simplicity, which had stemmed from the financial crisis, was likely to lead to "product homogenisation" and reduce firms' ability to innovate effectively and create absolute returns.