Miller 'naive' to accuse active managers of price collusion

Added 6th March 2017

Claims made by campaigner Gina Miller that the active management industry is ‘anti-competitive’ have been dismissed by a top portfolio manager as both ‘naïve’ and ‘dangerous’.

Miller 'naive' to accuse active managers of price collusion

Fighting back against Miller’s accusations against active management, Gary Potter, co-head of F&C Multi Manager Solutions, dismissed her criticisms as ‘dangerous’ after she released research claiming to have found evidence of price-collusion over active industry fees.

Miller, the founding partner of SCM Direct who conducted the research, hit the headlines last year after leading the legal battle to get Parliament to have a vote on whether the UK can trigger Brexit and is a well-known critic of the active industry.

Her latest investment research published on Monday found 70% of actively managed equity funds charged the same fee of 0.75% which, she claimed, indicated “no genuine price competition”.

Miller went so far as to accuse the industry of colluding “whether formally or informally” on prices charged to investors. 

Rebuffing her critique of active management, Potter said: “It is very dangerous to tar people or sectors, or the entire active space with the same brush. It’s naïve in fact.

“Being someone who uses both active and passive, it’s not the case that one is better than the other. Different approaches suit different times.”



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