Many top fund providers are using out-of-date performance data, which advisers and their retail clients could find confusing and hard to understand, Jeremy Mugridge has said.
The marketing director at London-based fintech firm Instinct Studios said the financial services industry needed to offer more up-to-date user friendly information, especially as a lot could change in investment markets over the course of a few weeks.
“We are all used to accessing real-time digital information from other industries, so it is surprising that most providers continue to offer static, out-of-date fund data.
“It is time that financial services embraced the benefits of offering up-to-date, user-friendly digital information before the regulator and consumers lose patience,” he said.
Reviewing the providers’ websites on 10 September, the firm found eight out of the top 10 fund groups contained performance data that was as much as six weeks out of date.
The eight included performance data to 31 July.
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 rather than a static factsheet.
In other research Instinct facilitated, of 500 investors and 100 financial advisers between 27 August and 4 September, only 24 per cent fully understood the fund information.
“Many retail investors feel the fund information supplied by providers can be unappealing and hard to understand – which is to be expected when even some professional advisers find it confusing,” Mr Mugridge said.
Hilda Stewart, press manager for Standard Life Investments, said: “The purpose of our fact sheets is to provide investors with the range of fund information necessary to provide context and information about the funds’ overall position.
“This may include the fund manager’s market investment review and outlook, specific fund activity executed and contextual commentary around its performance. We aim to produce and collate this information within 15 working days of the month end.”
Fund Group | Fund Name | Data as at date |
BlackRock | UK Fund | 31 July |
Standard Life Investments | UK Equity Growth Fund | 31 August |
M&G | UK Growth Fund | 31 July |
Invesco Perpetual | High Income Fund | 31 July |
Fidelity | UK Smaller Companies Fund | 9 September |
Henderson | Cautious Managed Fund | 31 July |
L&G Investment Management | UK Equity Income Fund | 31 July |
Schroders | Asia Income Fund | 31 July |
Old Mutual Global Investors | UK Equity Fund | 31 July |
Jupiter | UK Special Situations | 31 July |
Adviser View
Paul Coffin, wealth manager at London-based Capital Financial Markets, said: “This makes the case for people to do their own research and due diligence, and look at FE or Morningstar or go to an adviser. Also, how does providing out-of-date info fit into treating customers fairly?
“It is another reason for using investment trusts as these are listed and have to produce their asset price and net asset value daily.”
