Could consolidation go too far?

Discussions around what the post-RDR landscape will look like have tended to focus on cost and share classes but what of fund choice in 2013 and beyond? How many funds will remain in existence and how many providers?

After talking to many fund groups and industry commentators in recent months, it seems the answer to these questions varies depending who you talk to. Some of the larger groups say smaller groups will be forced out, while the boutiques believe they will offer something different to more discerning investors post-RDR. What it is probably fair to say is that fund choice, especially for the mass market, will become more concentrated. Fund groups know it is more important than ever to get their funds on the recommended lists for banks and insurance companies, with inflows from these areas su...