Why 'low cost equity funds' is a flawed concept

What is M&G’s opinion on 
low-cost active funds? I am not a believer in the low-cost options of index plus one funds at all. I think it is a getout clause for managers. Some groups are doing it to ensure they occupy a certain space in the market place post-RDR but I think it is a flawed business decision. We fundamentally believe in our ability to generate alpha and our whole business is set up to do this. Why would I constrain our fund managers when I think they can generate index plus 2%, 3%, 4% or higher depending on their strategy? These groups are assuming they can generate ind...