Have British fund managers become a pointless expense for investors?

Have British fund managers become a pointless expense for investors?

It is an open secret in the City of London that the vast majority of fund managers are bad at their job. Picking stocks that will consistently beat the rest of the market is notoriously difficult, yet the multibillion-pound investment management industry relies on the belief that managers in the Square Mile have talents worth paying a lot of money for. This belief is hurting investors. Savers are paying £115m a year in fees to Britain’s worst fund managers, who have failed to beat their benchmark index over a three-year period, a new report has warned. Broker Bestinvest’s Spot the Dog report, which names and shames funds that return substantially less than their benchmark, found that savers had entrusted more than £10bn to underperforming “dog” funds. Funds that invest in …
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