Investment trust industry remains supportive of performance fees

Commentators still see benefits of such fees despite recent Grant Thornton research showing they have had little material impact on returns

Industry commentators remain supportive of performance fees on investment trusts despite Grant Thornton research showing vehicles carrying such charges fail to deliver superior returns. Those surveyed by Investment Week said performance fees can be successful if they are designed correctly and carry a high watermark. Grant Thornton's research, carried out by consultant Hugh Aldous, found that of 240 trusts analysed from 2003 to 2007, those with a performance fee beat their benchmark 53% of the time. Those without the fee outperformed 59% of the time. Aldous said: "The study indicate...