The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Most New Active Funds Don't Reach $1B In 5 Years Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, May 30, 2024

Most New Active Funds Don't Reach $1B In 5 Years

Reported by Neil Anderson, Managing Editor

The vast majority of new active funds don't reach ten-figure territory anytime soon, according to new research from an consulting firm that supports fundsters.

Lisa Travaglini
Fuse Research Network
Director of Editorial
Lisa Travaglini, director of editorial at Fuse Research Network, reveals the Boston-based firm's new findings on attrition among new active ETFs and active mutual funds. The findings focus specifically on launches after December 2012 (i.e. more than 11 years ago).

Travaglini reveals that only 16 percent of new active funds reach the $500-million-AUM threshold within five years of launch (which means that 84 percent don't make it). Only 9 percent reach $1 billion (which means 91 percent don't make it). The odds are a bit more favorable for bigger firms, where 20 percent of new active ETFs and 23 percent of new active mutual funds reach $500 million.

"This data underscores the competitive distribution landscape and headwinds for new products," the Fuse team writes.

Most of the funds that don't reach those thresholds within their first five years disappear entirely. The Fuse team found that, of the new active funds that didn't get to $500 million in AUM within five years, 52 percent ceased to exist by the end of that time window. Among new active funds that didn't get to $1 billion in AUM fast enough, 53 percent died within those first five years. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use