AJ Bell’s Hughes adds it was a case of investors buying products that are fit for purpose and deliver value for money, something the Financial Conduct Authority has been banging the drum over.
“I think fund groups need to sit back and ask the question, are the funds suitable or should they be doing something else?” Hughes says, adding: “As someone who reviews funds I would like to see far fewer funds out there, it would be simpler and easier for everyone.”
For Miller, fund closures often paint a “wider picture” about the fund house itself than the attractiveness of any one strategy.
“We do not see a group favourably when we see a pattern when they launch a lot of funds, then three years later they close them and open new funds when trendy developments come along.
“There’s thousands of funds available to investors, taking some out would be a good development.”
But with the universe of funds growing year-on-year and launches outstripping closures, it may be an issue that has to get bigger before coming to an end.
