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Investors say reward fund managers for performance

Investors have told the AITC that they want to see more managers rewarded for good performance.

Almost two out of three investors say managers should be reimbursed commensurate with their results.

But only one in 10 investors makes their investment decisions based on recommendations from advisers.

The research also shows that investors look at risk, fund manager experience and dividends before they look at a fund’s previous results.

When assessing a fund, one in five investors thinks the risk characteristics of the investment vehicle are crucial and 17 per cent think fund man-ager name is important.

Just one in 10 investors rates past performance when choosing a fund while 16 per cent think dividend levels are a priority. Just 6 per cent make a decision based on the brand of the investment company.

Almost half (47 per cent) of investors think dividends are an added bonus but that long-term growth is key.

Communications director Annabel Brodie-Smith says: “It is encouraging to see that for most active investors, past performance is not the main driver when it comes to choosing a fund. Investors are looking for a much wider range of criteria.

“The increased warnings about past performance have had an impact although in many cases, past experience also may well have made active investors more cautious. “It is good to see investors taking a positive stance on perform-ance-related fees, suggesting an appetite for absolute returns.”


Tilney tailors portfolio

Tilney Investment Management has introduced a second issue of the Opal tailored notes plan, a capital-protected fund which is linked to the performance of a hedge fund of funds or a combination of this and a conventional fund of funds.The product offers a choice of two investment options which each have a term of six […]

JPMF wants to break free

JPMorgan Fleming has established the JPMF Europe dynamic (ex-UK) Fund, an Oeic that invests in a portfolio of 50-100 European stocks.


Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.


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