Blue Whale's Yiu on the biggest issues facing the industry

Not competing with passives

Tom Eckett
clock • 2 min read

Stephen Yiu, chief investment officer and lead manager of the newly launched £49m Growth fund at Blue Whale Capital, has said closet trackers are his biggest industry concern as they continue to give active management a bad reputation.

Speaking to Investment Week, Yiu claimed the majority of funds are closet trackers. "What happens is [fund providers] gather assets through strong marketing, run a diversified portfolio and monitor tracking error to make sure they are not significantly overweight or underweight the benchmark, but this is not investing," Yiu said. He added fee pressure in the industry was due to active managers consistently failing to outperform their respective benchmarks. In March, the Financial Conduct Authority revealed a number of asset managers had taken the step of paying £34m in compensation...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Partner Insight: US SMID - Seven questions answered

Partner Insight: US SMID - Seven questions answered

After a bumpy 2023, small- and medium-sized US companies are now in a good place to outperform in 2024, argues fund manager Mark Sherlock.

Federated Hermes
clock 12 February 2024 • 6 min read
Equity funds gather highest inflows in three years as investor confidence returns

Equity funds gather highest inflows in three years as investor confidence returns

Calastone Fund Flows index

clock 07 February 2024 • 3 min read
iM Global Partner launches global equity fund

iM Global Partner launches global equity fund

With Richard Bernstein Advisors

clock 01 February 2024 • 1 min read
Trustpilot