Instead of nodding sagely as I had a bit of a moan, they blatantly asked why they should be bothered?
Now call me a grumpy old woman, but I found that reaction rather disturbing.
The fund manager literally did not even pretend to care what I or my clients thought. Well, each to their own I suppose, but I admit that I found their approach infuriating.
Basically their view was that, even when a fund performs badly, investors stay loyal. (blog continues below)
So, as they helpfully pointed out to me, with a fund of just £50m, they can make £250,000 and if the fund was a more typical £500m in size, that’s a neat £2.5m reward for poor management, so why should they bother? They can limit their expenses and still make money. The fund manager honestly felt that they were still rewarded for bad performance and churning out new funds, therefore there is no incentive to change their approach.
So the oversupply of funds is down to investors (and advisers) being too loyal and fund managers not giving a stuff about their customers? Really?
Is that the sort of investment environment we want?
Philippa Gee is managing director of Philippa Gee Wealth Management.