In Monday’s Press & Journal, Carbon’s investment director, Barry O’Neill, discusses a topic that was also recently raised in parliament, the lack of transparency about investment fees from the active fund management industry.
In response to the issue being raised by MP Tom Tugendhat, Prime Minister David Cameron conceded that the lack of clarity was off-putting for investors and a barrier to saving. Mr Tugendhat claimed his investment costs were a whopping 5% a year. Barry concedes that this would be an extraordinary amount but explains that Carbon often see high fees in excess of 2.75% a year. The article explains why these costs simply don’t make sense; the investor takes all of the risks and gets very little of the rewards.
Barry’s insightful article also demonstrates just how unfair these charges are when you start to compare investment success, he cites examples that suggest the investments of active fund managers regularly perform worse than the index they are investing in, especially over the long-term.
The article is well worth a read, it does pose some serious questions about transparency, clarity and honesty. You can read the whole of Barry’s article here, or by clicking the image below.
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You can view Barry O’Neill’s profile here.