Use of segregated funds will 'fuel rise of low-cost active portfolios'

Currently, eight wealth managers use segregated mandates with another (AFH Wealth Management) set to launch in 2019, according to research by NextWealth. Meanwhile, four more firms have put tenders out to market and several others are considering using segregated mandates. Although only the largest wealth managers have the necessary scale to run funds using segregated mandates, the minimum size of firms using segregated mandates has fallen by half since last year, down to £5bn, NextWealth said, due to better support from ACDs. The report, Wealth managers as manufacturers: The conti...