Fund closures at record level
Monday 18 May 2009
Asset management companies are closing or merging funds at an unprecedented rate as they scramble to bring costs into line with falling assets and revenues.
In Steve Johnson article on April 12 he says that “According to figures from Morningstar, 1,439 fund classes were liquidated or merged across Europe and Asia in the first quarter of 2009, a 61.5 per cent increase on the same period in 2008.”
As an investor, what is the possibility or likelihood of you holding funds that are closing? How does it affect you? Does it matter if they are closing or not?
Perhaps the words of Christopher Traulsen might help...
“Investors can end up in a fund they didn’t want to be in,” said Mr Traulsen (Director of fund research for Morningstar Europe and Asia). “When things happen it’s usually in the interest of the fund company and these interests very often, if not always, conflict with the interests of fund investors.”
So investors watch out…the people you are asking to manage your money could be in conflict with you!
It is important to review your investments and if you get notification of fund mergers or closures, take the opportunity to rethink what action you really should take.
posted by Murray Round Wealth Management @ 15:58,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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