Fund managers should have 'proven track record'

15 February 2008 / by None
Investors should ensure that they look at the reputation of a fund's manager when thinking about introductory offers, according to an expert.

Independent financial advisor Bestinvest has warned that this type of offer often appears with the launch of a fund and therefore does not allow the potential investor to be aware of the fund manager's "track record".

The group stressed that because of this investors should exercise caution when considering new products.

Commenting on the issue, Adrian Lowcock, senior investment adviser at Bestinvest, said: "With Isas you get introductory offers when a product launches and the problem with new launches is that you might not know the actual track record of the fund manager and have a good idea of its performance."

He added that investors should always be absolutely clear about what they are entering into and that it is a good strategy to be a little "wary" of new offers.

Bestinvest was founded in 1986 by John Spiers and Roger Carroll.

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