Pressure mounts on fund platforms


The investment news this week has been dominated by the suspension of the Equity Income Fund from Neil Woodford with ETF providers and users stepping up to demonstrate the superior nature of the ETF wrapper. This is a big story for our industry with many knock-on effects. Over 10 years on from the financial crisis, it seems extraordinary that a long only mutual fund can cause its investors such harm. 

The focus now will be on the investment fund platforms beloved of wealth managers and IFAs everywhere, who have supported this fund and now can’t pay back client money. These are the very platforms that struggle to use ETFs. 

In other news, but along the same thoughts, the US’s ETF provider Vident comments on the importance of the G in ESG investing – good governance outweighs all other priorities in investing says Vident CEO Vince Birley and you can’t say fairer than that.

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Beverly Chandler,
Managing Editor, etfexpress

 

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