with isa season demand falling year after year, groups are choosing to close or merge funds with those valued under £10m most at threat
The Isa season is usually characterised by unit trust launches but this year it is being marked by fund closures. Falling markets have meant smaller portfolios and declining revenues for fund groups. According to Standard & Poor's, the average size of a fund is £117.81m. Of this some 21%, or 355, are under £10m in size. In addition the growing number of high profile mergers has led to duplication in fund ranges and subsequent streamlining. The result is that there are now 1,676 unit trusts and Oeics in Standard & Poor's database. Earlier in the millennium the number was closer to 1,...
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