Investment fees matter for two reasons. One is well known: fees reduce clients' returns. But this is not the only effect they have—fees also influence your investment manager's decisions.
Lately, institutions from the UK regulator to academic researchers to the world's largest pension fund have started to pay more attention to the importance of fee structures (not just fee levels). That focus should be welcomed by investors. By developing a better understanding of different fee structures and the incentives they create, we believe clients can improve their chance of finding managers who can deliver long-term value for money.
In this presentation we take a deep dive into investment management fees, exploring the benefits and drawbacks of various fee structures (including lesser known "refundable fees"), and the implications they each have for investors. We also question whether the industry thinks about fees in the right way and introduce the very simple, but rarely discussed, "value for money" equation. With a better understanding of fees, investors (and their managers) can focus on what ultimately matters most—value for their money.
Dan Brocklebank, CFA
Director, UK - Orbis Investments
Dan Brocklebank is a Director and Head of UK at Orbis Investments—a global investment firm with more than US$35 billion in assets under management. Dan joined Orbis in 2002 as an equity analyst researching energy, industrials and materials sectors.
For the last 9 years Dan was responsible for Orbis' team of global sectors analysts based in London. At the same time, he has worked with Orbis' institutional and retail clients to help them understand Orbis' long-term, fundamental and contrarian investment approach. He previously worked at Arthur Andersen.
Dan holds a Master of Arts (Honours) in Politics, Philosophy and Economics (Brasenose College, University of Oxford), along with the Chartered Accountant and Chartered Financial Analyst designations.