Talkin’ about revolutions
STEPHEN CRANSTON: The four forces shaping asset management
Roland Rousseau believes the future belongs to those who can unpack market risk and get in and out in a day
Roland Rat was the puppet who saved a morning TV station in the UK. The slightly less sinister sounding Roland Rousseau is doing his best to save intelligent debate in fund management. Anyone can join in as he writes in recognisable English, not in the usual chartered financial analyst speak that could be created by machines. Rousseau talks of the "four forces" shaping asset management. There is a shifting frontline of competition: the big question is not whether Allan Gray has outperformed Coronation or Investec. Rousseau rather wants to know why it hasn’t managed, over the past two years, to outperform index funds such as Satrix RAFI 40 or Dividend Plus. And the fee gap will be increasingly unacceptable, with Gray charging more than 2%, while Satrix charges more like 0.6% (which still looks high for a passive fund). The downside: Rousseau says low fees will turn it into a budget airline industry. The main budget carriers are Satrix, Sygnia and CoreShares, which have beaten 80% of ...
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