Aegon Adviser Attitudes Report 2021

Past performance and cost are key factors in choosing funds Past performance and cost are still the dominant factors when assessing fund quality, with 61% of advisers citing past performance and 53% cost as among the three most important factors when selecting funds. The first of these is perhaps surprising, given the industry’s now familiar mantra ‘past performance is no guide to future performance’. But advisers are clearly analysing a fund’s long-term performance alongside other important criteria such as investment process and investment strategy and ethos, which scored 34% and 44% respectively. Cost remains a key factor following the FCA’s publication of its asset management market study in November 2015 and its subsequent policy statement 1 in February 2019. The direction of travel from the regulator is clear in that it expects better transparency of charges and objectives, allowing investors to better judge whether their investments offer value for money. Our research also suggests that client demand and regulatory pressures are key factors in the downwards pressure on charges. Which of the following factors do you look at when assessing a fund’s quality? Please select a maximum of three answers 1 FCA Asset Management Market Study – further remedies. PS19/4. Published February 2019. Other Provider's brand Awards and ratings Fund manager credentials Asset allocation and top holdings Fund objectives Robust investment process Cost Investment strategy and ethos Past performance 61% 53% 44% 34% 31% 29% 18% 15% 4% 3% Aegon adviser attitudes report 2021 13