Wealth manager Macdonald says number of funds could be slashed

Asset managers have been slimming down the number of funds for savers

Michael Bow15 March 2017

Wealth firm Brooks Macdonald applauded the latest spate of asset manager mergers for slimming down the bloated number of funds on the menu for savers.

“I’ve always had a view there are too many funds,” chief executive Chris Macdonald said.

“There are more funds than there are listed stocks and some consolidation should help.”

Macdonald, who has led the firm since 1991, sees scope for the number of European equity funds to fall from about 100 to as little as 30.

Mergers like Standard Life-Aberdeen and Janus Capital-Henderson are expected to increase but Macdonald said Brooks was not for sale. “We are passionate about independence,” he added.

The 55-year-old stands down next month, with new chief executive Caroline Connellan taking over.

Half-year revenue rose 17% to £45.3 million with pre-tax profit up 49% to £8.2 million.

“I wish I was 10 years younger because we’ve done the hard work and now there’s real momentum behind us,” Macdonald said.