Hargreaves Lansdown head of research Mark Dampier has hit out at the lack of good active fund managers after reducing the number of funds in the Wealth 150 to its lowest level.
Dampier says there are now 121 funds in the Wealth 150 and predicts the number is likely to get lower as the RDR puts further pressure on funds. Hargreaves Lansdown has a team of 10 which compiles the Wealth 150, which launched in 2003. It uses quantitative and qualitative analysis to find the best funds across the major sectors.
Dampier says the list consisted of as many as 165 funds before the credit crunch in 2007.
He says: “I think we should be seeing a greater number of active fund managers showing consistency for investors. There are good managers like Nigel Thomas, Neil Woodford and Hugh Young but the fact is there is not enough. It is good backing for the passive argument. I think the number of funds will move downwards in the longer term as the likes of performance fees put more pressure on funds on the back of the RDR.”
Chelsea Financial Services managing director Darius McDermott says: “The soft closure of a number of top-performing funds in recent times is bound to have made an impact on what is available to investors. I would say there are enough good funds out there for investors but they will have to delve harder to find them.”