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The study, which looked at nearly 250 investment companies, found nearly 60 per cent of managers who do not charge performance fees managed to beat their benchmarks between 2003-07. Only 53 per cent of managers who do charge fees, however, managed to do the same.

Hugh Aldous, a consultant at Grant Thornton, said: "Generally speaking, the introduction of performance fees does not in itself lead to an improvement in performance or a material effect on the style of individual managers.”

The use of performance fees, once the sole province of hedge fund managers, has soared in recent years. According to Grant Thornton, more than 45 per cent of mainstream investment companies now charge some form of performance fee, rewarding managers for such things as beating a benchmark or improving net asset value.

Despite the fact these fees are now commonplace and seen as something positive within the industry, they are of little benefit to shareholders, Mr Aldous said.

"Performance fees can amount to quite a lot of money. They deserve more attention from boards.”