Co-investor risk limits fund choice for wealth managers

Growing concern over co-investor risk is leading some buyers to turn away from pooled vehicles entirely in a bid to reclaim control of their investments.

The ‘big getting bigger’ phenomenon has become a familiar theme in the asset management industry in recent years, and fund selectors say they are now having to pay just as much attention to the size of their peers. Discretionary firms and multi-manager portfolios continue to take assets from those looking to outsource their decision-making, and are consequently investing higher amounts in individual funds. As a result, fund buyers are becoming increasingly nervous over the implications for liquidity and performance. Tom Becket (pictured), chief investment officer at Psigma Investment ...