Jupiter's Bonham Carter urges focus on funds' 'active share'

Jupiter chief executive Edward Bonham Carter has said wealth managers and advisers should pay more attention to a fund's ‘active share' as they seek to add value for clients.

With unbundled pricing models reigniting the active versus passive debate and increasing the focus on cost, managers’ active share has come under fresh scrutiny. Data produced by Numis earlier this month attempted to separate out what portion of portfolios could add value after costs, and what portion is simply a ‘closet tracker’ of a benchmark. Speaking at Investment Week’s Fund Management Summit in London last week, Bonham Carter (pictured) said a greater dispersion in fund prices will be a positive for the industry, but suggested active products should face more scrutiny. “Activ...