Outsourcing buy lists offers investor benefit but industry unlikely to follow suit

ii says “time to evolve”

James Baxter-Derrington
clock • 6 min read
Outsourcing buy lists offers investor benefit but industry unlikely to follow suit

Outsourcing fund buy lists “undoubtedly” offers benefits to investors, however the industry is unlikely to follow the example set by interactive investor and Morningstar last month.

On 17 January, interactive investor announced it had made the decision to outsource the collation, production and maintenance of its select lists, including Super 60 and ACE 40, to Morningstar. Five funds ejected from ii Super 60 following Morningstar makeover Richard Wilson, ii chief executive, said as rated lists had become an important "starting point" for investors, it was "time to evolve". "We do not want to mark our own homework," Wilson explained. "There is a big funds universe out there, and it is time to broaden our scope." He added the move would free up the ii analyst...

To continue reading this article...

Join Investment Week

  • 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


More on Industry

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
Royal London group chief executive Barry O'Dwyer

RLAM AUM shrinks 9% in H1 but sustainable funds remain popular

9% decline in AUM

clock 05 August 2022 • 2 min read