One in 10 funds deemed too small to be profitable

One in 10 onshore funds has less than £10m assets under management, with the majority of these deeme...

One in 10 onshore funds has less than £10m assets under management, with the majority of these deemed too small to be profitable for groups or investors. According to Investment Week research, 168 out of over 1,700 Morningstar-listed funds have less than £10m in assets and at least a 12-month track record. Based on this data, the average total expense ratio for funds under £10m is 1.8% compared with 1.42% for those over £500m. New Star managing director for operations Stewart Cazier said TERs would be "crazy" on a fund of around £400,000. Private unit trusts should have the lowest T...