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RLAM: ‘It’s perverse fund managers sell themselves on performance’

Royal London Asset Management says it “perverse” that the fund management sector sells itself on performance.

Speaking at the Hermes Global Investors Investment Conference last week, chief investment officer Robert Talbut said: “It is important for asset managers to admit they do not really know what will happen in the future.”

He argued there was a “gravitational pull” towards the fund managers that are the loudest and more assertive about what the markets have in store.

Talbut said: “It seems perverse the asset management industry sells itself on investment performance which history tells us is almost a random event. We should be sceptical about the promises being made.” 

Hermes Global Investors chief executive Saker Nusseibeh says: “We are in the business where people always pretend they know the answers. This is a ‘guestimate’ business. Not only do you have to admit you do not know the answers, you also have to look at where else you can add value”

Westminster Wealth Management IFA James Gardiner says: “No matter how good the analysts are, there is no way of predicting what is going to happen. I think perhaps a lot of big institutions, through their marketing, highlight the good news more than the bad news. Instead it needs to be warts and all.”

Gardiner argues that investors want more feedback from fund managers on the downside investment risks, saying “investors are savvy enough to try and dig down a bit deeper. 

He adds: “Since RDR, clients take more interest in negative connotations of what they are buying. It would not hurt if more fund managers were more forthcoming about the downside.”



US equities fall over debt ceiling concerns

US stockmarkets fell and the dollar dropped to an eight month low yesterday over growing concerns of the economic effects of the stand-off over the US budget. The S&P 500 and Dow Jones indices both finished the day down 0.9 per cent, while the Nasdaq fell by more than 1 per cent. The dollar fell […]


Small businesses attack ‘never-ending saga’ of auto-enrolment

The Federation of Small Businesses has launched a blistering attack on the “never-ending saga” of auto-enrolment, criticising the cost to firms and the quality of Government communications. Speaking at a Social Market Foundation fringe event at the Conservative conference in Manchester yesterday, FSB national policy chairman Mike Cherry said the original intentions of auto-enrolment have […]


Beaufort Group chief exec Alan Easter quits

Beaufort Group co-founder and chief executive Alan Easter is leaving the business after 18 months in charge. Having set up Beaufort alongside Simon Goldthorpe in March last year, Money Marketing understands Easter is leaving to set up a new financial services venture. The firm’s board will continue to be managed by executive chairman Goldthorpe and […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


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