Are performance fees good for the industry?

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Responses to the Incisive Buzz survey showed most intermediaries in favour

In looking at performance fees, and whether or not this is a positive for the industry, the majority of intermediaries surveyed by IncisiveBuzz were in favour of the addition. Comments from intermediaries about performance fees were: • Nobody objects to paying for good results; paying less for bad results would help to weed out the bad funds. • Only those funds that have an active mandate will seek to charge performance fees. It is usually offered by funds that are prepared to cap the overall size of the fund to enhance returns for investors. Performance fees enable them to earn more in ...