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Friday Five: which fund managers should we sack?
Active fund managers get paid a lot to deliver results on our pensions and ISAs. What should we do if they don't?
by Gavin Lumsden on Feb 01, 2013 at 16:41Follow @GHLumsden
The idea of sacking fund managers came to me this week after reading two influential reports on good and bad fund manager performance.
The Sanlam (formerly Principal) Income Study and the BestInvest Spot the Dog report are much-loved fixtures on the investment scene. Fund managers, financial advisers and punters rush to see who the brokers are putting the boot into (and also take in the far less compelling aspect of which funds they recommend).
The Sanlam study focuses on 'equity income' funds. These are funds mostly investing in shares (or equities) that aim to deliver a much better income than you get from a savings account. With a bit of luck and good management the income should gradually increase too. Equity income funds obviously appeal to older people looking to live off their savings. However, equity income is a tried and tested route for younger investors too. If you choose the 'accumulation' units of these funds the income is automatically reinvested, giving you a better total return.
The BestInvest report takes a wider look at equity funds investing in the UK and in overseas. As the name suggests it highlights which are top dogs and which are mangy mutts in their fields.
Next: this isn't football
More about this:
Look up the funds
- Invesco Perpetual Income Inc
- Invesco Perpetual High Income Inc
- JOHCM UK Equity Income A GBP Acc
- Threadneedle UK Equity Income C1
- Trojan Income O Acc
- Scottish Widows UK Equity Income A Acc
Look up the fund managers
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