This was the recommendation made by Lipper, the independent fund research company. It conducted a survey looking at whether performance fees actually help align the interests of fund managers and investors. It found that two-thirds of UK funds can charge a performance fee if they beat a falling benchmark. Lipper recommends that since so many funds use performance fees, the industry should ensure there is clear disclosure of costs in order to help investors understand the fees that they are obliged to pay, when they should pay them and how much they are.
LATEST HEDGE FUND PERFORMANCE
Hedge funds have had a fairly lacklustre year so far, according to the latest data from the Dow Jones Credit Suisse Hedge Fund index. It reported that overall, hedge funds made returns of 1.59 per cent in July, bringing the year-to-date return up to 2.2 per cent. The best-performing strategy in July was investing in emerging markets, which posted an average return of 3.52 per cent. Since the start of the year, fixed income arbitrage has been the top performer. Funds that use this startegy have returned an average of 6.79 per cent this year and 1.2 per cent in July.
STANDARD LIFE CHOOSES SCHRODERS
The Schroder Global Alpha Plus fund and Schroder Asian Income Maximiser are now available on Standard Life’s fund platform FundZone. The pension and life insurance provider said it was adding these funds due to the amount of attention they both receive from financial advisers. The Global Alpha Plus fund aims to outperform the MSCI global equity index. This fund is managed by Virginie Maisonneuve, head of global and international equities, and Jonathan Armitage, head of US equities. The Asian fund is also a top performer, and targets a gross yield of 7 per cent a year.