As the big continue to get bigger, industry commentators address the issue of whether the rise of super-sized funds is healthy or a hindrance for investors.
Stuart Alexander, managing director, Gemini Investment Management Big funds can become unwieldy A ‘Goldilocks' situation is needed when it comes to fund size. Too small and the risks of investment concentration and TER/OCF start to appear. Too big and you can get the drag effect of being too diversified. As many commentators make clear, the ‘supertankers' can become unwieldy. We do need to look at the way funds are transacted these days. Previously the industry had diversification in the distribution model with 30,000 IFAs buying funds. But now we have super-buyers who, du...
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