Stockbroker Christows has fired a broadside at fund managers, claiming they get more respect than they deserve.Head of fund research Dan Kemp says investors selecting a fund should assume the manager is no good to ensure that their judgement is not clouded by marketing material. He also warns against relying on strong past performance as he says that performance nearly always proves inconsistent. Kemp says: “Assume that all fund managers are idiots until proven otherwise. As figures of authority, fund managers command more respect than they deserve. Begin your analysis of the fund with an assumption that the manager is no good. This helps to avoid being bamb-oozled by marketing spin.” But Resolution Assert Management sales and marketing director Jonathan Polin says: “The comments sound a little bit harsh. Good fund managers who can contin- ually outperform and make a significant premium ahead of what they are charging deserve what they are paid. “It is down to the inter- mediaries to look at how fund managers are performing and to recommend the outperforming funds to their clients. If fund managers do not perform, they are penalised by having their funds taken away.” Hargreaves Lansdown head of research Mark Damp-ier says: “It is only a very few per cent of fund managers who consistently outperform the market. “Most fund managers are vastly overpaid for not del- ivering a great deal a lot of the time.”
The FSA wants firms that only do a small amount of equity release business to either cease their activities or pass leads on to experts.The unprecedented request forms part of the regulators mystery shopping results into the sector which show a slight improvement on last Mays disappointing findings into the lifetime mortgage market.The announcement of […]
Ihave just returned from a visit to the physiotherapist. I am a right-handed man with tennis elbow in the left arm, due to an over exuberant two-handed backhand.
Scottish Equitable is extending its post A-day pension range with the launch of a group Sipp from July 24.The group Sipp is an extension of its group personal pension plan, allowing clients to choose the self-investment function as and when appropriate. Although Scot Eq believes group Sipp will become more mainstream it says the majority […]
The Chartered Insurance Institute elected its new line up of officers for 2006-2007 including a new president to replace Peter Hales at its annual general meeting in London earlier this week.
Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]
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Legal & General has appointed Mark Jones to the role of product director of UK protection, within its insurance division. Jones joins from Sun Life. He will be responsible for the developer of both retail and group protection products, and will report into the managing director for UK protection, Steve Griffiths. Griffiths says: “We are […]