Wealth manager research reveals true cost of fund manager exits

clock

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 Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA launches consultation on private stock market

FCA launches consultation on private stock market

Move follows Mansion House commitment

Linus Uhlig
clock 17 December 2024 • 3 min read
Partner Insight: Is FOMO overruling investment basics?

Partner Insight: Is FOMO overruling investment basics?

In 2020 we introduced our bubbles chart showing how concentrated investors were in a particular theme. Four years on we look at what, if anything, has changed, and what it means for investors going forward.

Orbis Investments
clock 16 December 2024 • 3 min read
Special situations: How to spot a good management team

Special situations: How to spot a good management team

'We prefer management teams that are considered rather than overly promotional'

Henry Flockhart and Andy Gray
clock 10 December 2024 • 5 min read