Richard Buxton, who is set to join Old Mutual Global Investors from Schroders next week, has argued there are too many funds in the UK market which are not generating adequate returns.
In a panel debate about the future of active management at the LPEQ investor conference yesterday, Buxton (pictured) said fund houses are reluctant to shut down underperforming funds. He said only about 5% to 10% of funds in the industry produce superior performance. "When I started out in the industry 27 years ago, commentators were suggesting then that it was in dire need of consolidating, but it has not happened and the industry has got a lot bigger," he said. "There are far too many underperforming funds, but fund management is a business and no-one wants to pull funds, so inves...
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