Professor John Kay says fund groups should not be forced to publish quarterly interim managed statements, claiming they add little value.
Speaking at an Association of Private Client Investment Managers and Stockbrokers conference in London, Kay said investors would be better served by regular meetings with fund managers at intervals of three to five years.
He said: “The removal of quarterly and interim reports would be as much a symbolic act as anything. This kind of information is in a large part just noise.”
Kay argued fund managers should be encouraged to develop relationships with customers and companies to move from a transactional-based culture to a relationship-based one.
He said: “I would like to see the industry required to behave according to fiduciary standards, by putting the client first and avoiding conflict of interest where possible, and where conflicts are unavoidable disclosing them and ensuring they are not an occasion to profit.”
Philip J Milton & Company managing director Philip Milton says: “To be absolutely frank, fund management firms that fail to put their customers interests first will ultimately see their business die a death, as is the case with all businesses.”