Tower's new boss aims to deliver value
Value is one of the key words for TOWER Asset Management’s new boss Tony Hildyard.
Thursday, February 24th 2005, 6:37AM
Hildyard says in many cases not enough of the returns generated by funds are actually to investors as they are chewed up in costs for managing and distributing the funds.
One of his goals is to reduce these costs and get the savings through to the investor.
One of the obvious areas where savings could be made is in reducing commissions to advisers, but he is quick to point out that this won’t be happening.
“It’s not about taking margin off advisers,” he says. “Advisers have already been slapped about.”
Rather there is the ability to reduce costs in the administration areas.
He says there will be some product rationalisation. Another of Hildyard’s themes is to take some of the lessons TOWER has learnt and tools it uses in the wholesale area and use them in the retail space.
He says one of the things which needs to happen is improved education about products. His observation is that the retail space is too focused on hot products and past performance and that this needs to change.
For instance a good old balanced fund will meet the needs of many investors.
“The advantages need to be able to be better explained about why they should be used.”
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