Fund managers are being slammed for their decision to suspend trading in response to the market uncertainty cr eated by yesterday's terrorist attacks on the New York financial district.
IFAs are accusing fund managers of degrading the value of unit trusts as compared with direct equity investments as scores of fund managers suspend trading. Fund managers had argued that the present market levels were unrealistic and wanted to wait for trading in New York to recommence to see the extent of any collapse before returning to the market.
Hargreaves Lansdown head of research Mark Dampier says: “It is making unit trusts look like second rate investment vehicles compared to directly invested equities. The market is open, the fund managers should be trading. This is not good for the industry.”
Some analysts are also predicting a co-ordinated 0.5 per cent cut in interest rates by the US Federal Reserve, European Central Bank and Bank of England to help fend off the threat of recession caused by the terror attacks.