Legge to pay price of failure

Nigel Legge, the former chief executive of Liontrust Asset Management, is pioneering an asset management business model that will cut fees if its funds fail to beat benchmarks, as clients start to baulk at hefty annual management charges. Mr 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 charge and then 20 per cent of performance over the fund's benchmark index.