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Active managers ‘add value’

Octopus Investments has warned it may be tougher to manage its multi-manager Omnis funds within their cost caps because irrational markets are likely to increase the need for active managers.

The Omnis multi-manager range was launched last year with a 2.25 per cent cap on the total expense ratio. The cap was made possible through a core-and-satellite approach based on the theory that a big part of the returns are generated by the market, so investing in a core of exchange-traded funds and institutional-style tracker funds will deliver returns at a lower cost than active managers. The higher costs of active managers who outperform the market can then be met within the cap as satellite holdings.

Chief investment officer Lothar Mentel says the funds held more ETFs and passive funds at launch than they will hold long-term. TERs were less than 2 per cent, but are now approaching 2.1 per cent in the advanced fund.

“At the moment, markets are irrational and we think active managers in the UK can add value.”


Questions on SJP link

A friend of mine has thrown in the IFA towel and joined St James’s Place. Apparently, SJP offer all sorts of financial support, a great concept for selling their own investment funds in preference to those of all the mainstream providers that the rest of us use and SJP take responsibility for all sales undertaken by their “partners”.

Shape shifting

While out the other evening with some of the good, good people of Lazard Asset Management, a fund manager told me that he was no long feeling as optimistic about the outlook for the global economy as he had been.

Liontrust reveals Euro absolute return details

Liontrust has announced that its European long/short absolute return retail fund will be launched at the end of June, subject to Financial Services Authority (FSA) approval.The Liontrust European Absolute Return fund, managed by Gary West and James Inglis-Jones, will use the same investment strategy as their existing long-only Continental Europe fund. Called the Cashflow Solution, […]


Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]


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