Wealth manager research reveals true cost of fund manager exits

clock • 2 min read

The departure of star managers may have hidden costs for investors "stampeding" for the exit, a wealth manager has warned.

Heartwood’s head of product and manager research Alan Sippetts (pictured) has examined the small print of leading UK-based active fund managers, calculating the cost of moving from one fund to a substitute vehicle may cost as much as 2% of the investment. He estimated investors face a unit trust spread or OEIC dilution cost of 0.75% for large-cap UK equity funds, a 1.07% cost for a mid-cap fund and a 2.24% charge for a small-cap fund. Dilution levies have traditionally been imposed for investors trying to pull out a significant chunk of assets from a portfolio. In addition, Sippett...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth Management

Wealth management heavyweights join KKR's Global Wealth Investment Council

Wealth management heavyweights join KKR's Global Wealth Investment Council

Newly formed forum

Valeria Martinez
clock 25 March 2024 • 1 min read
M&G Wealth Platform to host full MPS range from 7IM

M&G Wealth Platform to host full MPS range from 7IM

Expands accessibility for advisers

Sahar Nazir
clock 19 February 2024 • 1 min read
Redington head of global assets Gillespie: Do you trust your DFM?

Redington head of global assets Gillespie: Do you trust your DFM?

Five key questions to ask

Tara Gillespie
clock 31 January 2024 • 4 min read
Trustpilot