Asset Management

‘Huge swathes’ of lacklustre active funds face extinction, Walter Scott exec warns

'Far too much of the so-called active segment is really only active to the extent it charges a high fee,' Roy Leckie says

Edinburgh-headquartered manager predicts a thinning of the herd
Edinburgh-headquartered manager predicts a thinning of the herd Photo: Getty Images

A senior executive at a leading UK investment house has warned that a large number of active managers charging high fees for benchmark-like returns will be “cleared out” over the next decade.

Roy Leckie, an executive director at Walter Scott — the Edinburgh-based equity specialist founded in 1983 by the eponymous Scottish physicist and investment manager — also predicted that the consolidation across the investment trust sector will make its way towards traditional investment funds.

WSJ Logo