Why one DFM cut its active UK equity managers from nine to three
A London discretionary manager’s investment director on conviction, cost and the end of “diversification by default”.
Marcus Hale, Senior Reporter, Mandates
7 min read
When the investment committee reviewed its UK equity line-up last year, it found that nine active managers were, collectively, delivering something close to the index at three times the price.
“If you own enough active managers, you end up owning an expensive tracker.”
The firm now runs three managers with deliberately differentiated styles alongside a low-cost core, and reports that the change has cut blended fees by around 22 basis points.
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