FORMER chief executive of Liontrust Asset Management is pioneering an asset management business model that will waive fees if its funds fail to beat benchmarks, as cost-conscious clients start to balk at hefty fund charges.
Nigel Legge, who ran Liontrust before stepping down last year after the firm lost most of its assets, will launch his new partnership Vinculum’s first fund in January.
The IM Vinculum Global Equity Fund will charge investors a 0.25 per cent annual operating charge and then 20 per cent of performance over the fund’s benchmark. Funds traditionally charge an annual management fee regardless of how they perform relative to a benchmark.
Legge, 53, founded Liontrust in 1994, taking the company public and growing its assets to more than £5bn before the exit of two star managers in 2009 sparked an outflow of client money.