Are IT fees under threat amid rise of passives?

Trust experts speaking at AIC conference

Investment trust commentators have said the rising threat of passives is becoming increasingly prominent within the sector, as scrutiny on charges and performance fees across the wider industry grows.

Speaking at the Association of Investment Companies (AIC)'s annual UK conference earlier this month, Canaccord Genuity's Alan Brierley and Henderson's James de Sausmarez (pictured) discussed the investment trust fee structure and how it is becoming more vulnerable to falling charges in the open-ended sector. In addition, they also noted passive funds - which simply track an index and are traditionally cheaper to hold - are another threat that is impacting certain areas within the investment trust industry. During the debate titled Charges - a brave new world Brierley, who heads up inv...