Artemis is turning its back on fund supermarkets for more traditional distribution channels, saying they do not add value and recycle existing business at lower margins.
The move will see the firm withdraw from Fidelity's fund supermarket FundsNetwork and stay out of rival supermarkets.
It says it will keep a close eye on the progress of supermarkets and it will consider buying into the concept when it feels they can add value to its business.
Artemis was founded in March 1997 by the former UK team at Ivory & Sime and has £500m under management. It is one of the highest-profile players in fund supermarkets.
Managing director Jamie Campbell says: “We have stated our intent to withdraw. The key motivator for us is that the pricing models used by supermarkets do not accord with Artemis's business plan. So far, we have not seen any supermarket increase distribution. They merely recycle existing business at a lower margin.”
Fidelity executive director Robin Threadgold says: “Artemis is leaving supermarkets in general. As of May, no new money will be accepted. We respect its decision but it is unusual and goes against the tide. We have 32 managers already on board and several more looking to join.”