Majority of global AuM in mutual funds and ETFs sits in legacy products

New funds struggle to stand out

clock • 2 min read
Three-fourths of all AuM in mutual funds and ETFs sits in legacy products today.
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Three-fourths of all AuM in mutual funds and ETFs sits in legacy products today.

Almost 80% of all ETFs and about 60% of all mutual funds that launched in 2018 closed by 2021, with three-fourths of global AuM in these products sitting in legacy funds, new research by the Boston Consulting Group (BCG) has found.

According to BGG's 20th annual report on the global asset management industry, entitled From Tailwinds to Turbulence, new funds have struggled to stand out against established funds with a long-term track record of success. The outlook for legacy funds has been so positive that there has been no incentive for investors to take a chance on newer products with short track records, resulting in the number of new funds shutting down climbing steadily over the last decade.  Assessment of Value regime called into question as fund closures remain stagnant "Older products benefit from ...

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