15 Nov 2019

Investment Funds – Proving their worth…or not

From October, Fund Managers are having to prove their worth. The FCA have said all fund managers have to produce an annual statement showing key statistics

Examples of these statistics are:

Quality of Service

Performance net of fees

Costs – Including a breakdown of who is paid what and why

And, Classes of units

It could make interesting reading, and it shows a consistent drive from the FCA to improve transparency and accountability. The main expectations as a result of this? That many investors will see that they are paying higher charges than they need to when the manager has more than one class of unit, that delivers the same thing but for a different cost (none of our clients need worry about this I hasten to add), that people will expect returns which are relative to the amount of risk taken and ultimately pressure of fund managers to reduce their costs.