The UK’s fund management industry is losing the war against index tracking
What’s gone wrong with Britain’s fund management industry? Over the past year share prices have soared globally, which usually translates into boom times for asset managers, whose income is based on a percentage cut from the total amount of money under management. Yet the UK’s industry is beset with scandals and sliding fortunes among some of the once most-revered names.
Jupiter is attempting to arrest its decline with a £370m takeover of Merian (once Old Mutual’s investment arm), creating a £65bn group that boss and serial deal maker Andrew Formica promises investors will be “highly earnings accretive”.