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Philippa Gee: No more new funds

If I read one more press release telling me the exciting news that XYZ fund management group is proud to announce yet another fund launch I will, quite literally, scream.

I don’t care if they feel that they have something completely original to bring to the table (I mean, do they really? Really?). I don’t care if they feel they can add untold value in an already popular sector, like no other fund manager on earth has previously been able to.

I care about investors and I am not convinced that they benefit.

The world is changing and if you have the budget to launch new funds and market them, then that is good news. Indeed at a time when fund management groups are coming under extraordinary pressure, to have strong financial resources is positive.

My concern is whether they can truly demonstrate that they are already making the most of their existing funds, because for me, those should be prioritised. Is everything possible being done to fulfil the objective of the existing funds, whether it is increasing returns, minimising risk or so on – if they were to throw more money or more resources at the existing funds, rather than new launches, surely that could improve matters?

From my perspective, I have to consider the end investor; they are my priority and what do they want? They want the range of funds already available to fulfil expectations and to deliver that which lead them to invest in the first place. By offering more funds, how are you benefitting those clients?

My request to fund management groups? Get your house in order.

Philippa Gee is managing director of Philippa Gee Wealth Management.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. hear hear very good! couldn`t agree any more

  2. Absolutely spot on Philippa.

    What IFA companies support these new funds with no track records to judge them by?

    I absolutely agree that if Fund Managers are flush with spare cash they could reduce their AMC’s or invest in resorces to improve performance or god forbid what about both!!!

  3. ABC is launch a UK Equity Income Fund. It’s remit is to provide a yield 115% of the All Share with capital growth over time. “We are very excited said…..”
    Zzzzzzz……

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