On performance

Wins research tells us the investment trust sector has outperformed the FTSE All-Share by 4.2% this ...

Wins research tells us the investment trust sector has outperformed the FTSE All-Share by 4.2% this year, falling only 8.8% in H1 2008 against a 13% drop for the index. Conceptually, that will generate performance fees of, say, 10% on a 420bps return. Except, of course, where there is an absolute high watermark. So, dear shareholder, at this point you have a choice. A good investment company manager will have outperformed but you will still have lost money. Is a performance fee OK? If this market turns into a savage bear, do you mind more performance fees as your portfolio struggles...