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Fof chief hits out at average aim

Jupiter head of fund of funds John Chatfeild-Roberts has hit out at multi-managers who claim to settle for consistently average performance.

Chatfeild-Roberts says multi-managers are making excuses for poor performance by pretending that they settle for lesser returns.

He dismisses the idea, which has been mooted by Skandia Investment Manage-ment, that top-quartile performance is a riskier strategy than settling for consistent average performance.

But Skandia says it would damage the reputation of an investment house and the IFA recommending the fund if a multi-manager took big gambles with funds.

In Money Marketing this week, Chatfeild-Robert says: “The debate, led it seems by a particular group of multi-managers, seems to suggest that providing top quartile returns is somehow a risky strategy.

“That such an argument can exist is rather bemusing. The fact it has gained any momentum is even more surprising. Why would a client pay the additional management fee for us to manage their fund exposure if they are not going to get any additional benefit from it?”Skandia chief investment officer Alan Durrant says: “We do not see why we should take unnecessary gambles with people’s money. That would not be good for our reputation or for the IFA. This is why we look at rolling three-year performance and not the short term.”Multi-manager, p26

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