Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a754762

Rathbones' Coombs: 'If Dobell had a trust, we would buy tomorrow'

by Danielle Levy on Jun 05, 2014 at 08:06

Webb added: 'It is a very difficult decision as a chief executive to shut off a fund, a really difficult decision. And it is a very difficult to achieve as we don't have mechanisms that are easy to do that. When you have an open-ended fund, what are the mechanisms? You can slap on an initial charge, take them off all of the platforms. Would it not be easier to say we are closed to new business? Wouldn't that be a wonderful thing.

'I think what you are going to find in future is a greater view from the investment professional as to what they are capable of running in total size and businesses that really care about unitholders will shut capacity.'

He said two things to monitor are the size of the the inflows into a fund, alongside how fast the inflows are into a fund.

'These are two things to watch on the research side and as CEO of RUTM I am definitely watching. We would not hesitate to shut a fund or limit capacity in a fund.'

Sign in / register to view full article on one page

1 comment so far. Why not have your say?

Victorian Assets

Jun 05, 2014 at 09:13

It is all very well for David Coombs to bemoan the logical desire of the CEO's of fund houses to maximise their asset gathering potential by flooding successful mandates, but to my mind the blame for this lies FIRMLY at the door of Fund Buying Supremos of large wealth managers like himself. The consolidation of the wealth management industry and centralisation of fund buying decisions has meant that the likes of Rathbones can ONLY invest in huge funds (to the almost total exclusion of smaller managers). Furthermore, the pressure on fees and the knee-jerk reaction against performance fees (understandable in the immediate aftermath of the GFC, but set up right is the most effective way of aligning the manager with client outcomes) has meant that the funds' industry HAS NO CHOICE but to go big and take full advantage of star fund managers' performance. The consequence of the huge consolidation in the wealth management industry (the reasons for which are well known) is having the effect of almost entirely withdrawing the oxygen which once provided grub capital for start up funds to get going; withnout which the Neptune's, LionTrust's, Artemis', Guniness, Odey's of today would never have got going. I politely suggest that it is Mr. Coombs and his CEO that should be the ones sitting down and understanding that it is their actions that lie at the heart of the problem identified in the article, and beyond. Ultimately none of it is to the long term benefit of the underlying investors and their returns which must suffer.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • M&G Recovery I Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rathbone Multi Asset Strategic Growth Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rathbone Multi Asset Total Return Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • David Coombs
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Tom Dobell
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet