The majority (86%) of financial advisers agree that recent high-profile fund suspensions highlight the importance of considering a full range of asset types amid the acknowledgement the majority are biased towards mutual funds, research conducted by the lang cat and in conjunction with the Association of Investment Companies (AIC) has found.
However, the study, released on Monday (2 November), which surveyed 192 members of the lang cat adviser panel, also found that 91% of the assets held in model portfolios were open-ended funds. This left other fund structures including investment companies a "minority sport". Four-fifths (82%) of the advisers surveyed agreed that there is an inherent bias towards mutual funds within the retail investment sector. The sector faced several fund suspensions earlier this year including St. James's Place and Columbia Threadneedle. Many of these sudden closures were in response to the coronaviru...
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