Professional Adviser speaks to M&G managing director and global head of retail sales, Jonathan Willcocks, about his views on low cost funds and charging levels.
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...
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