One-quarter of investable funds in Europe 'irresponsible' subscale funds

Research from Morningstar

Lauren Mason
clock • 3 min read

Amundi, Allianz and BNP Paribas have been named as the asset management firms with the highest number of so-called "orphaned funds" in their range, which are subscale and dormant funds that disadvantage investors through high fees and poor performance, according to research from Morningstar.

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 orphaned funds have a Negative or Neutral rating, which means they are either not expected to outperform or underperform, or are expected to underperform. Ho...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot