New rules effectively removing caps on how much local investment vehicles such as pension funds can invest offshore by using exchange-traded funds (ETFs) is likely to be a disaster for the active managers, according to Sygnia founder Magda Wierzycka.

In an environment where many companies are de-listing from the JSE and managers who pick individual shares, as opposed to tracking indices, are struggling to justify the higher fees, the regulations are likely to provoke fierce resistance, said Wierzycka, whose first business was a fund of hedge funds, but has been increasingly focusing on cheaper index trackers...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now