View more on these topics

Over 700 funds holding less than £30m

Three out of 10 funds in IMA sectors hold less than £30m in assets, the level that most managers regard as the minimum for the average economical fund.

A total of 733 out of the overall 2,450 funds fall below the £30m level but the firm says the overall figure is probably bigger as many smaller funds have not disclosed their size.

Skandia fund manager Ryan Hughes says £30m is generally regarded as an economical fund size and funds below that level could be in danger of closure.

He believes that companies could merge or close funds in the next few years.

But OPM Fund Investment chief investment officer Tony Yousefian feels some smaller fund firms can keep funds economical below the £30m mark as they have lower costs.

Hargreaves Lansdown senior analyst Meera Patel says: “There are still too many funds being run and if they are inefficient they are likely to be closed in the future. Some are specialist or family funds but the majority are probably costing too much to run and that cost burden is probably ending up with the investor.”

CandidMoney.com founder Justin Modray says: “If economies struggle, we are bound to see more closures and mergers in fund ranges.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com