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

  • 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

Multi-Asset Roadshow 2024: PA is coming to a city near you!

Multi-Asset Roadshow 2024: PA is coming to a city near you!

Join us in Leeds, Warrington, Birmingham, Bristol and London

Professional Adviser
clock 07 December 2023 • 1 min read
The firm was co-founded by MP Jacob Rees-Mogg (pictured).

Somerset Capital Management to close after SJP redemptions

Two funds to be transferred after firm shuts

Elliot Gulliver-Needham
clock 07 December 2023 • 1 min read
The report also revealed that just six holdings of a total ten hold any value, with the remaining four companies representing no value in the fund.

Remaining Woodford fund assets shrink 40% since last distribution

Just six holdings of a total ten hold any value

James Baxter-Derrington
clock 07 December 2023 • 3 min read