View more on these topics

Boutiques to boom as stars opt to shine on their own

The UK will see a proliferation of boutique fund management groups as the bigger houses struggle to hold on to their stars, according to Liontrust co-founder Nigel Legge.

Speaking at an IFA roadshow – alongside Close Fund Management and Rathbone Unit Trust Managers – Legge said the recent wave of fund manager departures from big investment companies illustrates that top-flight managers prefer to work in smaller companies.

Legge also highlighted that barriers to entry within the industry have fallen in recent years, providing more opportunities for fund managers to start their own businesses.

Liontrust believes that easier access to seed capital for start-up firms and more information channels are opening the door for smaller companies.

Contrary to the view that increasing consolidation will shrink the industry, Liontrust believes that it will continue to fuel the flow of start-ups.

Marketing director Jonathan Harbottle says: “Consolidation in the industry will cause a proliferation of people moving out of the big groups and starting up their own businesses.

“Also, by definition, new companies have lower overheads today. We outsource anything that does not touch the client, such as fund accounting and valuation functions, so, as a new entrant, you do not burden yourself.

“The trick is to differentiate yourself in what is an extremely competitive industry.”

Recommended

Govett revamps IFA website

Fund manager Govett Investments has set up a website for IFAs and investors. The company says it has invested around £350,000 on upgrading its old site to provide more up-to-date and interactive services. IFAs have a password-protected area at the site at www. govett.co.uk which provides commission details, IFA sales team contacts and Govett research […]

Skandia plea for freeze on polarisation change

Skandia is calling for the FSA and the Treasury to freeze their polarisation plans until after the launch of stakeholder and the general election. The life office says with the election expected this spring and the rush to introduce changes before stakeholder begins in April, there is not enough time to ensure changes to the […]

&#39Mortgage banks rip off their borrowers&#39

Nationwide Building Society has launched a scathing attack on mortgage banks, accusing them of ripping off longstanding existing borrowers to subsidise cheap deals for new customers. Chief executive Brian Davis says the mortgage market has become “perverse”, with major lenders offering substantially better rates for new borrowers than for existing customers who are stuck on […]

Paradigm lost

Balderdash, bunkum, mumbo jumbo. It is all around us. We live in a world full of jargon and nonsense and financial services is no exception. A mountain of research shows that financial jargon stops private investors from putting their money into shares. It is also a major hurdle to be overcome in the world of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment