Garrett-Cox: Industry is littered with orphan funds

Katherine Garrett-Cox, chief executive of Alliance Trust, has said fund management groups should focus on areas of strength as opposed to running extensive fund ranges which struggle to gain traction.

Over the past couple of years, Alliance Trust Investments has closed down a number of funds as the group moves to refocus its business in three key areas: global equities, fixed income, and socially responsible investing. In May, the group announced plans to close its North American and European equity funds, following the closure of its UK Equity Income, Asia Pacific Equity, and Japan Equity funds in 2012. Garrett-Cox (pictured), who has led the strategic review of the business, said the industry is populated with too many orphan funds which fail to deliver strong long-term performan...