Are platforms stifling innovation in the fund market? It would seem to me there is a good case to say they are, and I suspect the basis for some of this protectionism comes from a desire not to do another Arch cru.
Arch cru, as we all know, was an embarrassment for some parts of the market, not least those platforms that gave them a place because Arch cru stumped up the necessary money for ‘shelf space’. It was obvious to some at the time, and nearly everyone now, that putting illiquid, private equity-style investments within a daily traded, open-ended fund does not work. No-one wants another Arch cru, and if platforms are trying to stop it happening again by making it harder for small funds with dubious investment ideas to find a home, I would applaud that. But they are not. They are often m...
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