Majority of global AuM in mutual funds and ETFs sits in legacy products

New funds struggle to stand out

clock • 2 min read

Almost 80% of all ETFs and about 60% of all mutual funds that launched in 2018 closed by 2021, with three-fourths of global AuM in these products sitting in legacy funds, new research by the Boston Consulting Group (BCG) has found.

According to BGG's 20th annual report on the global asset management industry, entitled From Tailwinds to Turbulence, new funds have struggled to stand out against established funds with a long-term track record of success. The outlook for legacy funds has been so positive that there has been no incentive for investors to take a chance on newer products with short track records, resulting in the number of new funds shutting down climbing steadily over the last decade.  Assessment of Value regime called into question as fund closures remain stagnant "Older products benefit from ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Multi-asset

MPS Watchlist: Helping advisers navigate the sector

MPS Watchlist: Helping advisers navigate the sector

Impact of Consumer Duty

Professional Adviser
clock 07 February 2024 • 1 min read
Invesco launches discretionary model portfolio service

Invesco launches discretionary model portfolio service

Six investment portfolios

Jenna Brown
clock 31 January 2024 • 1 min read
Partner Insight: Vanguard - Investing through the economic cycle

Partner Insight: Vanguard - Investing through the economic cycle

Some portfolios are designed to deliver value through multiple economic cycles. Find out how advisers can deliver long-term value with ‘all-weather’ portfolios.

Trustpilot