Private wealth holders 'should pay for good fund managers'

People with private wealth who are looking for ways to invest their money should pay more for fund managers who perform well.

This is according to Ed Moisson, head of UK and cross-border research at Lipper, who said investors should give fund managers rewards for outperforming their benchmark.

"A performance fee incentivises the manager to perform that much better," he stated.

Mr Moisson commented that over the next couple of years, more fund managers may start charging these extra fees, as a result of pressures.

This follows on from research that shows two-thirds of financial advisors expect recommence for good work, according to Alice Ross, presenter at the FT Money Show.

Mr Moisson noted that the Retail Distribution Review could have an impact if the way fund managers receive revenue changes, as this could lead them to look for other sources of income.

He went on to tell private banking customers that these fees are "standard" for hedge funds, adding that there has been a "knock-on effect" into the absolute return sector.

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