Whitechurch plans size cap to limit 'superfunds' on buy list

Whitechurch Securities is considering imposing a cap on the size of funds it buys for clients, a move which may see it automatically sell a fund once it hits a set limit.

The group recommends a number of funds which have grown dramatically in recent years, including the £5.9bn First State Asia Pacific Leaders, and the £4bn Newton Asian Income funds. However, Whitechurch is now making plans to exit funds when they exceed a certain level, amid growing fears some of the biggest portfolios are struggling to maintain their long-term track records. Ben Willis, head of research, said the problem is particularly prevalent in the emerging market space, and the group intends to start focusing more on the funds which could be the winners for the next generation. ...