Hunting for alpha: Four premium priced funds worth paying for

Fund managers have been feeling the squeeze on pricing this year, with distributors including Hargreaves Lansdown forcing down headline prices on funds as businesses adapt to the new world.

In addition to platform pressure, the ongoing challenge from passives shows no signs of letting up. Momentum is now shifting from mid-cap stocks to large caps, providing a fresh headache for active managers, given the prevalence of large caps in trackers. Unsurprisingly, many fund groups have cut prices in response to calls from distributors, with the average AMC of 0.75% for most equity funds coming down to 0.65% or lower via new deals. However, the flurry of fees cuts masks the fact many wealth managers are prepared to cough up more than the average 75 basis points for some funds...