How to slash fund managers' fees

If Britain's overpaid and underperforming fund managers followed the honest charging structure used by Warren Buffett, investors might actually get what they pay for, says Phil Oakley.

The mainstream media seems obsessed with the size of bankers' bonuses. And rightly so. As I discussed here, investment bankers earn poor returns for shareholders while taking large risks.

Yet another key part of the City machine that deserves just as much criticism largely escapes attention. I'm talking about fund managers - the people who manage our savings pots and retirement funds. They are another bunch of supposedly talented people who get paid too much money for delivering too little.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.