Investment bank and multi-manager Insinger de Beaufort has called for multi-manager performance to be measured by its own index so that funds of funds can be truly compared.
Speaking at the Sway conference in Monte Carlo last week, director Peter Fitzgerald said IFAs are subjected to undue risk and are unable to make inf-ormed decisions for their clients because funds of funds and manager of managers are presently able to avoid direct comparisons.
He has called on Standard & Poor's to set up an index so that fund of funds can be measured against each other. S&P says it will look at the idea if it finds enough intermediaries want such an index.
Fitzgerald says: “Multi-managers are getting away with murder by not having to be checked against some sort of index and it is getting harder for IFAs to pick the multi-manager that is right for their clients.”
S&P technical production consultant Simon Pehr-son says: “We are looking at adding new indexes and if there is demand for a funds of funds index, we would seriously consider it.”
Sway conference, pages 13-14