Will 2012 be the year low cost actives dominate?

Laura Miller
clock • 3 min read

Could 2012 be the year low cost active funds emerge as a savvy way to keep charges down, or will they be exposed as a get-out clause for managers trying to gain space in the post-RDR world?

This year saw the rise to prominence of the low cost active fund. HSBC, JP Morgan, Schroders and Fidelity have been among the first big groups to launch suites of cut price actively-managed products. Fund houses have said the ranges offer investors a lower-risk, transparent alternative to passive investing which aims to outperform the market by around 1% – the best of both the active and passive worlds. But with the launches have come warnings the funds entering the market are not viable options for investors because of their low return targets. As advisers and fund managers look f...

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