New fund launches to be greatly reduced
The number of new managed funds launched over the next few years will be "greatly reduced", as will their targeted "raise sizes", according to Craig Northey, head of sales and relationship management at researcher Aegis .
"Between 2007-08 and 2008-09 we researched around 60 new funds each year, which is a lot, but we expect that number to fall away over the next two to three years," he said.
At the time there was an average targeted 'raise size' of between $20 million and $50 million, he said, but he expects this to fall to between $10 million and $30 million.
"There's got to be a good reason your doing a raising between now and June 30 and you need to have a quality product to do that raising, and even if it is a quality product, there's no reason for you to get that raising away."
Northey said there "could have been too many managed funds in the market but that this was relative to the size of the pool of money they could draw from".
"There has been so much money available to go into them all that, for argument's sake, you could say there weren't too many products available at the time.
"But the pool of money has now shrunk, as a result in part of the number of clients opting to stay in cash rather than risk the market."
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