Gosling's Grouse: What is a fair price for solutions?

'Buyer beware' in the solutions arena

As we all know, the Financial Conduct Authority (FCA) is very keen on price competition within the asset management industry believing it creates greater choice and thereby greater overall competition.

It argues active management is all priced about the same - roughly 65bps-75bps - which ignores the fact index funds also operate within a narrow price range, while some of the more  innovative ETFs have managed to price themselves in similar ranges to active equity funds. But my Grouse this week is not about single strategy active funds, or even passives; it is about the burgeoning 'solutions' funds, which largely sit in the Investment Association's mixed investment categories. Let us put aside the sheer stupidity of a category called 'Mixed Investment 40%-85% Shares' or '0%-35% Share...