Fund houses react to accusations of out-of-date data

Fund houses react to accusations of out-of-date data

Several of the UK’s largest mutual fund managers have responded to claims that their factsheets contain performance data that is six weeks out of date.

Research by fintech firm Instinct Studios found that mutual fund factsheets from eight out of top ten fund groups contained performance data that was six weeks out of date.

Despite August’s market turmoil, of the 10 factsheets reviewed on the providers’ websites on 10 September, eight only included performance data to 31 July.

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Only the Standard Life Investments UK Equity Growth Fund factsheet included data to 31 August, while the Fidelity website included online performance data for the UK Smaller Companies Fund updated to 9 September 2015 rather than a static factsheet.

It added that the Fidelity website did not include a standalone factsheet, but did include fund performance data.

Instinct used the top 10 fund groups by gross sales, according to the Pridham Report, which included Blackrock’s UK Fund, M&G’s UK Growth Fund, Invesco Perpetual’s High Income Fund, Henderson’s Cautious Managed Fund, LGIM’s UK Equity Income Fund, Schroders’ Asia Income Fund, Old Mutual Global Investors’ UK Equity Fund, and Jupiter’s UK Special Situations Fund.

However, a spokeswoman for Old Mutual told FTAdviser that its factsheets get updated around “business day plus 15”, meaning the end of August data will be available shortly.

“We have to wait for all the data to be provided and for the information to be verified/complied before we can issue information to investors to the website,” the group responded, adding that it has communicated regularly with investors during the volatile markets, through web conferences, meetings, or by posting updates to websites/via emails.”

A Blackrock spokeswoman responded that its UK retail fund factsheets are loaded onto the website on the 10th business day of every month and it recently launched the Blackrock Adviser Exchange, a digital resource to broaden engagement with advisers.

“The service provides up to date market views and free access to a range of Morningstar client portfolio-modelling tools.”

A spokesperson for Schroders commented that their factsheets are produced on a monthly basis - delivered to external platforms on business day nine to be precise - as is standard industry practice.

“We provide fund information to our clients in a number of ways. In addition to our factsheets clients can also find daily pricing and performance information on funds on our website and on fund platforms at any time.”

Finally, M&G’s spokeswoman said that it takes a week after the month-end to obtain the final performance data, as trades are still being settled, noting it would be “rather unwise to publish monthly data before that time as it would still be subject to change”.

Also, once it receives the final data, factsheets are then produced on a “huge scale” - every month the firm publishes over 1,730 fund factsheets, for 12 international regions in seven languages - “this takes a few days, as you would imagine”.