Fund groups must embrace changing world

Letter

Trail fees, multi-ties and open architecture all need to be taken on board

Angus Duncan, former head of investment sales at Skandia Sir, What is it that fund managers offer to prospective clients? They offer access to bond, equity and cash markets to provide investment performance greater than the market in which they are invested. As an add on, they also promise to hold the client"s investment either in or out of a tax wrapper. In most cases, the latter is outsourced at a cost to the fund group. It is this cost that can be mitigated by embracing fund supermarkets. To do so will move from a fixed plus variable cost base to one entirely based on funds held via ...