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IMA baffled at report of Sandler move on active funds

Ron Sandler will recommend that the Government cracks down on the sale of actively managed funds bec-ause of the belief that they rarely outperform cheaper tracker funds, according to The Times.

The paper says Sandler&#39s review team will make the recommendation when it publishes its report, expected in mid-July, because Sandler does not believe that actively managed funds are worth their value compared with trackers.

The claim comes as a surprise to the IMA, which says that in the several meetings it has had with the Sandler review team, this idea has never been mentioned.

The claims about actively managed funds come despite research from fund analyst Standard & Poor&#39s, reported in last week&#39s Money Marketing, which indicate that in some cases funds with higher ann-ual management charges offer better returns.

The study found that over the last five years across a number of sectors that investors in funds with an AMC of 0.49 per cent or less got an average return of £1,233 on £1,000 investment while investors paying 1.5 per cent or above got returns of £1,384.

The Treasury refuses to comment on the story, saying that it is only speculation as to what might appear in the report and that Sandler has not spoken to the media.

IMA head of communications Clare Arber says: “This is not something we are aware of and has not come out of any of the meetings we have had with Ron Sandler to date.”


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