Can performance fees really benefit your clients?

The topic of performance fees caused quite a stir among the adviser community recently after Hargreaves Lansdown’s CEO, Peter Hargreaves, lambasted fees, saying they were designed to only benefit the manager and provided no advantages for investors. Hargreaves is not the only detractor. Philippa Gee of financial adviser Philippa Gee Wealth Management has also condemned fund managers’ use of fees, saying she generally avoids recommending funds that charge them. However, the number of funds using performance fees is on the rise. A report last month by Lipper identified 81 open-ended fun...