Given that a large percentage of active fund managers (with all the resources available to them) struggle to beat their respective benchmarks, what makes IFAs think they can do any better?
The reason I ask this question is that having recently attended a PFS minds-stretchers event, I was astonished to note just how many of my fellow diners thought that they could do just that.
Now I don’t doubt that some of those I met that evening are very well meaning but investment professionals they are not.
Sadly I couldn’t help but get the feeling that their investment propositions were more about justifying their annual ‘advice fee’ than they were about providing a sound and robust investment service.
RDR is raising many questions but perhaps one that is at the forefront of many advisers minds is ‘what is it that I actually do to justify my annual advice fee?’. It would appear from my recent observations that this is a question many of my peers are finding difficult to answer.
SRC Financial Services Limited