Amazon a prime threat to fund managers, analysts warn

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.

Amazon could also set up robo-advisory services, the analysts wrote, as Chinese e-commerce giant Alibaba has already done. Robo-advisers provide automated investment advice and direct customers’ money toward particular mutual funds.