The fund management industry does not serve its customers well. Many of the largest organisations have lost sight of what is best for the client, rather than their own company. There is no other industry in the world where so many operators fail in a multiple of the basic business disciplines of professionalism, efficiency, transparency and honesty, yet make so much money. Given the power fund managers have over people’s lives in terms of their savings, and therefore their quality of life, the industry needs an urgent overhaul. People trust their life savings and financial futures to these organisations that often are no more than marketing machines, designed to extract the maximum sum from clients for the minimum work.
In fund management, size creates drags on performance, rather than lower costs. Fewer portfolios or funds to manage means more focus and generally better performance. Less complex investment products normally mean more understanding and more performance. Fewer people employed in bureaucratic investment committees normally means more timely dynamic decisions.
