So, while there are some big vested interests who will resist and protest change, there are also now some even bigger players out there pushing for a new way of doing things.
The real power of the zero fee—and the kernel of a solution for the industry – is that it forces fund managers to focus on what really matters to clients, net of fee performance, rather than what currently matters to their owners under a flat fee structure – i.e. getting bigger.
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With this and other next generation innovations, the stage is now set for a new deal: “We only win if you win”.
In our view, this would be a healthy and welcome development and a huge step towards restoring some much needed trust in the industry.
Dan Brocklebank is head of UK at Orbis Investments
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