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Cost-cutting sees over 130 funds close

A total of 138 funds have closed or merged in the past 12 months, research from Financial Express has revealed.

Among the firms that have made numerous changes to their range are New Star and Royal London Unit Trust Managers, with six each while Inv-esco Perpetual, Fidelity and M&G – who currently occupy the top three slots in terms of UK retail funds under management – have also made changes to their respective fund ranges.

Schroders managing director of UK retail Robin Stoakley says the figure reflects the pace at which asset managers have needed to cut costs in difficult markets, pointing to the fact that the number represents more than 5 per cent of the 2,000 funds in the unit trust/ Oeic space.

“This indicates just how difficult the past 12 months have been for asset managers across the industry. I would expect to see not only more fund closures but also more acquisitions.

“We have also seen acquisitions where changes to the fund management range have yet to take effect. However, I do feel the pace is set to slow.”

F&C recently announced proposals to merge eight funds into other portfolios run by the asset manager while a further shake-out is expected from both the Henderson-New Star and Aber-deen-Credit Suisse deals.

Chelsea Financial Services head of investments Matthew Woodbridge adds: “There has been a need for consolidation as there are too many funds at unsustainable levels and the markets have meant many fund managers have needed to tidy up.”


Retail fund sales lowest in 10 years

Net retail fund sales in Britain fell by nearly 75% from 2006 to 2008, from a high of £15.3 billion in 2006 to £3.9 billion in 2008, according to sales from the Investment Management Association (IMA).


Changing codes

Former New Star Asset Management chief investment officer Alan Miller made his return to the investment industry last month and has wasted no time in trying to ruffle feathers.

Key themes for 2017

Capital Market Notes, December 2016 Dave Lafferty, chief market strategist at Natixis Global Asset Management, assesses the accuracy of his 2016 outlook and provides his thoughts and outlook for 2017. Click here to read the full article


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