2. Notably in the performance of actively managed funds and the charging structure used for such funds.
3. FCA proposed a number of measures including bringing greater transparency to pricing, greater clarity to the duties of fund managers and give investors a ‘much clearer sense of the strategy they are investing in’.
4.The switch from defined benefit scheme membership to defined contribution membership were noted to be significant.
THOUGHTS
1. No doubt there are funds with poor performance, however, these funds could have long term strategies with some taking a different view therefore not all funds can perform consistently. At different parts within the economic cycle, different management and fund styles will perform better.
2. Why not let Market forces dictate costs, not regulation. Focus on advising clients to shop around and let fund managers charge what want.
3. Currently investment managers charge the same way according to percentage of funds under management) and are roughly the same amount. If market forces were working, larger funds would logically be cutting their costs and there would be other methods of charging. Are there collusions involved.
