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.”

 

Sponsors

Overseas earners will be key amidst 2017 inflation

Sponsored by Neptune

Overseas earners will be key amidst 2017 inflation...

A by-product of sterling weakness is inflation, and we expect this to continue to gather steam over the coming months, with energy and food prices the hardest hit....

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Europe 2017
PA Europe 2017

Thursday 11 May
Furniture Makers' Hall

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Investment Trusts 2017
PA Investment Trusts 2017

Tuesday 20 June
Furniture Makers' Hall

Sponsored Content

OTHER STORIES FROM LAST WORD...