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.
If you would like to discuss your financial planning options, please contact us with any questions you might have. You can do this by calling our head office on 0131 220 0000, or by emailing us at email@example.com. or you can also follow us on Facebook, Twitter or LinkedIn.
You can view Barry O’Neill’s profile here.
We have offices in Edinburgh, Glasgow, Aberdeen, Perth and London. You can contact us at any of our offices, or by email.
Carbon Financial Partners Limited is authorised and regulated by the Financial Conduct Authority. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.
The Financial Conduct Authority does not regulate some forms of tax advice.
Registered in Scotland #SC386400.
Registered Office: 61 Manor Place, Edinburgh EH3 7EG, Scotland.
© Carbon Financial Partners 2020
Site designed and developed by Art Department