Amundi, Allianz and BNP Paribas have been named as the asset management firms with the highest number of so-called "orphaned funds" in their range, which are subscale and dormant funds that disadvantage investors through high fees and poor performance, according to research from Morningstar.
The report, compiled by the Morningstar Manager Research Services, EMEA team, also found that orphaned funds account for nearly 25% of the total investable universe with a median size of just €16.6m. Of these, 30.9% received a Negative rating - the lowest of Morningstar's five-tier quantitative and qualitative-based screening system, which gauges expectation for a fund to outperform over a market cycle. In total, almost 80% of orphaned funds have a Negative or Neutral rating, which means they are either not expected to outperform or underperform, or are expected to underperform. Ho...
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