Train: Ignore fund managers' 'sob story' on revenue squeeze

UK equity manager Nick Train said his holdings in fund managers will remain "extraordinarily profitable", despite a squeeze on headline fund pricing from distributors.

The manager of the £393m Finsbury Growth & Income trust urged investors to ignore the “sob stories” from fund management CEOs about narrowing margins, pointing to the ”amazing” economies of scale available for large asset managers. Train has a 5.5% position in Schroders, 4.3% in Rathbones, as well as a 4.1% holding in wealth manager and fund platform Hargreaves Lansdown. “The economics of scale for asset management firms are simply amazing,” he said. “I imagine Schroders is very keen for its shareholders to understand how extraordinarily profitable it is, but it probably does not w...