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 for free

  • 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

Schroders gains FCA approval for launch of first 'retail' LTAF aimed at wealth market

Schroders gains FCA approval for launch of first 'retail' LTAF aimed at wealth market

Fund aimed at advisory and discretionary clients

Cristian Angeloni
clock 25 September 2024 • 2 min read
Liquid alternatives in the eye of economic storms

Liquid alternatives in the eye of economic storms

Advisers must reconsider their investment strategies

Rudy Koitchev
clock 23 September 2024 • 3 min read
Beyond 60/40: Diversify, diversify, and diversify again

Beyond 60/40: Diversify, diversify, and diversify again

For a less volatile long-term investment journey

Chris Ayton
clock 19 September 2024 • 4 min read