TResearch undertaken by the European Securities and Markets Authority found that in the period from 2015 to 2017, on average, costs accounted for 25% of gross returns from retail funds. The study showed the impact of charges varies significantly across asset classes.
With respect to fixed income fund performance, the report found there had been a steep decline in recent years due to bond market performance. Costs stayed stable in absolute terms, but have recently reduced investor returns significantly – accounting for 52% of gross returns in 2017 compared to 27% from 2008 to 2017.
At Philip J Milton & Company Plc, we believe it is essential you get a good level of value from the charges you pay so your funds are able to work hard for you without being subject to excessive fees.
Our own managed strategies invest within a broad mixture of direct shareholdings which have no underlying charges and Investment Trusts which typically have lower underlying charges than their open ended counterparts. When dealing we operate on a percentage fee basis with no minimum flat rate charge ensuing the charges on even small accounts are not prohibitive.
Our annual management charge not only gives you access to our discretionary investment management service whereby we actively manage your investments seeking to secure the best possible returns, but also includes ongoing annual reviews to ensure the investment remains appropriate for you based upon your needs and objectives. Is this level of service being received with your current fund manager?
If you are interested in our discretionary management service or would like a comprehensive review of your existing investments to determine whether your fund manager is providing good value for the charges, please do contact the office to arrange a mutually convenient appointment with one of our highly qualified advisers.
The value of stockmarket investments and any income from them may fall as well as rise and investors may not get back the amount originally invested. Yield figures may vary and are not guaranteed. It is advisable to hold these investments for a minimum of five to ten years, over which periods stockmarket returns have shown themselves to be historically superior and broadly predictable through both good and bad times. Past performance should not be seen as an indication of future performance.
