The £7.6bn M&G Recovery fund, run by Tom Dobell, is also a long way off from soft-closure, according to M&G, but Mr Willis notes there has been some speculation as to whether Mr Dobell will be able to continue to manage his Recovery fund effectively at its current size. One potential alternative suggested by advisers is the £762m Liontrust Special Situations fund run by Anthony Cross and Julian Fosh.
Periods of short-term poor performance in some high-profile offerings including the Invesco Perpetual Income and High Income products, both run by industry stalwart Neil Woodford, have also left some investors seeking out alternatives.
The £5bn Artemis Income fund, run by Adrian Frost and Adrian Gosden, provides a strong alternative, however it is still substantial in size.
But according to Gavin Jones, chartered financial planner at Old Mill Financial Group, concerns about size are dependent on asset class. “I do not have concerns about large funds that invest into liquid markets such as main market equities. However, several of the funds invest into emerging markets and lower quality corporate bonds markets that can become less liquid or completely illiquid at times,” he adds.
The wide, and ever-increasing, universe of investment funds means that although the soft closure of popular and successful funds can sometimes affect an investor’s portfolio there is likely to be some overlooked and smaller vehicle that provides as good, if not better, returns.
The key is to look outside the popular names and with the RDR requiring a whole of market approach from advisers, investment trusts should not be overlooked either.
Katie Holliday is a freelance journalist
