YOUR PORTFOLIO Bouti

Boutique fund groups rarely make the headlines , lacking the sales and marketing budgets of their larger peers . Yet the lack of pressure from external parties such as shareholders means they have the flexibility to be “ asset managers ” rather than “ asset gatherers ”, allowing them to focus on performance and performance alone . In addition , boutique fund groups – usually defined as those with less than £ 25bn in assets under management – are often considered to have a purity of vision that is lacking in their larger peers . While this list of attributes is often warranted , none of them are automatic , as the recent antics of some boutique managers have shown . The success of a boutique group is as much about skill and philosophy as size .

The bottom line Certainly , while the larger fund groups say there are many benefits of investing with a major player , it is difficult for them to argue better performance is one of them . Economies of scale , for example , only go so far . Jerry Wharton , chief executive of Church House , says : “ While it may be true that larger companies can benefit from economies of scale in client base , compliance and technology , the cost advantages they gain don ’ t necessarily translate into

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