RDR surely did not envisage the consequence of concentration risk increasing as more and more money continues to go into fewer and fewer funds nearly three years after its introduction.
Far from being a bad thing, Richard Garland, managing director, Americas and Japan client group, at Investec Asset Management says it is a “terrible thing” as we end up with what he describes as the “best seller” effect where every distributor ends up offering the same fund.
In conversation with International Adviser Garland also cites fear of the regulator as a reason why the bigger funds at the bigger groups get the most adviser recommendations.
