Multi-asset fried by damning research
You are more likely to be “hit by lightning” than see returns that beat inflation and cash from a multi-asset fund, according to fresh research raising the debate into cost effectiveness once again.
Performance
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Is Fidelity’s performance-based fee a good idea?
Fidelity International’s announcement that it will implement a performance-based fee sparked mixed reactions in the industry. As always, the devil will be in the detail.
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Fidelity switches to performance-based fee model
Fidelity International is the first major asset manager to make a switch to a “value for money” charging structure. The asset manager will give money back to clients when its funds underperform.
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Morningstar: Time to end fixed fund fees
The time has come to offer investors a fairer deal and drop fixed fees for performance-based charging, Morningstar’s head of global manager research Jeffrey Ptak has said.
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The secret to US equity funds’ outperformance
Most active US equity funds struggle to ever outperform their benchmark. But this year, the secret to outperformance has been surprisingly straightforward.
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Growth funds dominate top-performing European equity league
With the summer holiday break approaching, it’s a good time to look back: which funds have done best this year, and what has helped their performance? We start with the asset class that has been most in focus this year: European equities.
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Is 2017 really the year of the active manager?
Within the fund industry, 2017 was widely heralded as ‘a year for active managers’. This was underpinned by a strong belief markets would once again focus on fundamentals, after a number of years when central bank policy and geopolitical concerns were driving asset prices. More than half-way the year, Expert Investor looks at the performance…
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ANALYSIS: Are performance fees a fair deal?
Performance fees are often seen as a necessary evil. But the unambitious hurdle rates most funds employ mean fund managers also get rewarded for underwhelming performance. Is that fair?
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Do expensive funds provide value for money?
When investors decide to buy a fund that charges higher-than-average fees, they presumably do so because they expect the manager to compensate for this by delivering outperformance.
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Which asset classes lost you most money in 2016?
Thanks to the end-of-year ‘Trump rally’, 2016 has been a pretty good year for investors in risky assets. However, not all asset classes have fared so well.
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Don’t pick outperforming funds if you want a good return
Fund selectors would not do wise using past performance as a metric in their fund selection process, according to three American scholars. Moreover, funds that have outperformed their benchmark over the past three years tend to underperform funds with a mediocre or poor performance record over the next three year-period.
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Investors blame industry size for hedge fund underperformance
Not the excessive fees they charge, but the rapid AuM-growth of hedge funds after the financial crisis is to blame for their disappointing performance. Unfavourable macro conditions also play their part.