Lift restrictions on performance fees says Fitzrovia

Restrictions on performance fees in the UK no longer serve a practical purpose and should be lifted, says Paul Moulton, chief executive of fund research company Fitzrovia International. This is a key conclusion from Fitzrovia's analysis of performance fees for nearly 1,500 open-ended funds globally - the vast majority of which are open to retail investors. Moulton said: "The basic concept of investors paying more for truly superior investment management can be described unequivocally as a fair one, provided the incentive fee is properly constructed and reflects 'real' index beating ...