Australian Unity Investments (AUI) is reluctant to add more boutique fund managers than the four it has now as it would deteriorate the partnerships.
"It won't be a lot more [boutiques] than it is now," AUI head David Bryant said yesterday at a press briefing.
"We could add one or two more over the next two years, but I would be just as happy to add no boutiques at all over the next four years."
AUI has a 50 per cent interest in Acorn Capital, Platypus, Vianova and Wingate, while the other 50 per cent is held by the fund managers themselves.
AUI attaches great value to having an equal say in the business it partners with.
"There is no greater lie than the 49/51 per cent split because when things get difficult it comes down to: 'I tell you what to do'," Bryant said.
But this approach does take a high level of involvement and limits the scope for expansion, Bryant said.
"You can run only so many partnerships well," he said.
Besides, there is a limit to how many different investment strategies you can run in a business, Bryant added.
