T.BAILEY has responded to claims that multi-manager funds cannot justify the charges they incur, countering that charges do not hinder investment performance.
The latest IMA statistics (to the end of September) show that £33.1bn is now invested in funds of funds, up from £27.4bn a year ago. But, despite the soaring popularity of multi-manager funds, many people have questioned whether they warrant such high charges, which incorporate the skills of the underlying funds' managers as well as those of the multi-manager, plus the consolidation of administration charges. Using data from Lipper, analysts at T. Bailey have calculated the proportion of funds of funds outperforming their respective IMA sector average (after charges) over three and five...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
