Are larger funds polarising the industry?

Simon Ellis, managing director at Legal & General Investments, argues the fund management industry is becoming increasingly polarised, as large funds continue to dominate retail sales.

Ellis said new fund launches are struggling to gain traction as intermediaries and wealth managers opt to put client cash into tried and tested mandates, giving smaller funds little chance of gaining support. "The tight dominance of individual funds in the sales figures is really worrying for the industry. There are too many behemoths hoovering up all of the money and making the whole fund management sector much more polarised," said Ellis. "It is great when you have a popular fund on a number of buy lists, like we do with our Dynamic Bond trust, but it is very concerning for groups t...