Asset manager refunds fees after underperformance

He said he feels when funds grow beyond a certain size, they cease to be able to invest in the same way as they could when the fund was smaller, and this means they cease to be able to be as effective as they were.

Martin Slendebroek, chief executive of active fund management company Jupiter, said he expects the squeeze on active fund management fees to continue in the future, with between one and two basis points a year being shaved off fees every year.

He said he expects there to be a sharp bifurcation in the market between those fund houses that are “genuinely active” and those which are not.