There have been a number of academic papers that have examined the performance of funds managed by smaller 'boutique' investment houses versus the much larger 'asset gatherers'.
The outcome of these various studies is overwhelming: boutiques tend to be the better performers with a consistent performance premium across various asset classes, ranging from 0.23% to 0.62% per annum net of fees. As a fund selector who has worked for some of the world's largest and smallest asset managers - and having met with and analysed the portfolios of managers ranging from new fund launches to $50bn funds - I can provide some personal insight and views on the 'boutique premium'. Larger funds may underperform for a variety of reasons. Firstly, a manager of a large fund has ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
