Bonham Carter: Active managers must justify their fees

Pressure from cheap passive investment products will put pressure on active managers to justify the fees they charge, said Jupiter's Edward Bonham Carter.

The group chief executive said there will be a divergence between the growing range of cheap beta products and those funds with active stockpicking strategies, and a move towards consolidation in the industry after the Retail Distribution Review in 2012. Speaking at a Morningstar Investment Conference yesterday, Bonham Carter said: "It is incumbent on the active industry to improve. I suspect there will be increased consolidation and the need for active managers not to behave like closet indexers. "We are paid to take views against the benchmark, which can have a concertina effect of...