ANNOUNCEMENT: On 29th February 2024, Expert Investor becomes PA Europe. Learn more.

Posted inAnalysis

Fund manager window dressing is increasing – Cerulli

As fewer funds than ever manage to outperform their benchmarks, as yet to be published research by Expert Investor shows, asset managers are putting up smoke screens.

“Clarity―or lack thereof―is the issue,” says its report on the matter. Many investment consultants were particularly indignified about asset managers putting forward back-tested performance data as the numbers of a real fund, or performance data where it is unclear whether the numbers were net or gross of fees.

Investment consultants also complained about asset managers sweeping a poor performing product under the carpet, either by changing its name or its mandate. Changing fund data without explanation between pitch and proposal, and managers launching or adapting products based primarily on market demand were also commonly heard griefs.

One might be tempted to conclude from this that asset manager foul play is going too far. However, Cerulli stops short of naming and shaming the worst abusers. But you can help us clearing this up. Contact me at Full anonymity assured.

Part of the Mark Allen Group.