LGIM's Ellis: Why RDR spells end for 1.5% AMCs

As the deadline to RDR draws ever closer, Legal & General Investments managing director Simon Ellis talks to Kyle Caldwell about plans to expand the group's multi-asset suite and the inevitable rise of outsourcing.

As the Retail Distribution Review (RDR) deadline draws ever nearer, a number of fund houses have moved to offer low-cost versions of active funds to challenge the new(ish) wave of passives entering the market. As battle lines are drawn, other groups are resisting the urge to launch low-cost products, in the expectation investors will still pay a premium for active management as long as managers produce good enough returns consistently. Industry veteran Simon Ellis, who joined L&G IM two years ago to head up its unit trust business, having previously led a review of the Financial Servi...