Quarter of investable funds in Europe 'irresponsible' subscale funds

Research from Morningstar

clock • 3 min read

Allianz, Amundi and BNP Paribas have been identified in research from Morningstar as the asset management firms with the highest number of so-called "orphaned funds" in their range.

The financial data giant has defined orphaned funds as subscale and dormant funds that disadvantage investors through high fees and poor performance. The report, compiled by the Morningstar Manager Research Services, EMEA team, also found that orphaned funds account for nearly 25% of the total investable universe with a median size of just €16.6m. Of these, 30.9% received a Negative rating - the lowest of Morningstar's five-tier quantitative and qualitative-based screening system, which gauges expectation for a fund to outperform over a market cycle. In total, almost 80% of orphane...

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