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Article: Her Majesty's Soft Dollars: Guest writer Wayne Wagner challenges a controversial proposal on fund management costs.
- Article from:
- Traders
- Article date:
- February 1, 2002
- Author:
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Copyright informationCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Investment managers - and not, as is customary, the clients of institutional investors - should eat the research costs generated by transactions in managed accounts.
It is a brave new world, but that is the conclusion of a controversial report on the U.K. pension industry, inked by a former chief executive of Gartmore Investment Advisers.
"Clients' interests would be better served if they required fund managers to absorb the cost of any commissions paid, treating those commissions as a cost of the business of fund management, as they surely are," declares Paul Myners, in the report commissioned by the U.K. government.
The conclusion is not ...