RDR will bolster tracker appeal - Cofunds

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The RDR will strengthen the appeal of passive funds as advisers move towards a fee-based structure, says Cofunds.

Speaking at a Cofunds' 'low risk investing' roundtable, Russell Lancaster, director of fund manager relations, says the majority of advisers currently earn trail commission on active funds. However, as IFAs move to a fee-based structure, passive funds could be put on a level playing field in vying for adviser business, he believes. His comments come as the debate rages about the merits of passive investing with many new providers such as Vanguard entering the UK market and existing fund houses boosting their tracker range. The roundtable panel were also divided on the merits of pas...

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