Pandemic and lack of innovation blamed for fall in fund launches

New launches 'on hold'

Kathleen Gallagher
clock • 3 min read
The drop in launches last year was a “hangover” from the pandemic.
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The drop in launches last year was a “hangover” from the pandemic.

The number of new fund applications dropped by over 50% in 2021 compared to the previous year and fell to its lowest level since records began, a Freedom of Information request to the Financial Conduct Authority submitted by Investment Week has shown. 

While some commentators place blame at the feet of the pandemic, others note the lack of innovation in open-ended funds compared to their closed-ended peers, and some suggest the industry has turned its focus to revamping existing funds to make them more sustainable.  Ryan Hughes, head of active portfolios at AJ Bell, highlighted that planning for new launches requires time, meaning that the drop last year was a "hangover" from the pandemic.  "As a result, given the huge uncertainty that was seen throughout 2020, it would seem likely that many asset managers put planning for new lau...

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