SVM's Veitch: Industry emphasis on fund pricing instead of value creating 'sub-optimal outcomes'

Regulatory changes reducing competition

Neil Veitch, investment director and board member at SVM Asset Management, has warned there is an element of investors being 'penny-wise, pound-foolish' when it comes to analysing funds, with serious implications for the industry.

The manager, who runs a number of strategies including the £157m SVM UK Opportunities fund, said there is too much emphasis on minor changes in ongoing charges figures (OCF) and not enough on the value funds are delivering. He said this has been largely driven by regulatory changes, which have been implemented with good intentions but have actually led to a reduction in competition, leaving the consumer with less choice. Aberdeen's Fleming: Fee pressure is not going away, but active managers can still get good pricing For example, in last November's interim report as part of its As...