The EIS market has long been characterised by relatively poor investment performance and high fees, which are two sides of the same investment coin. As the Finance Bill receives Royal Assent this week, the focus of the market will move to growth companies as the 'asset-backed' market is effectively retired.
In an article entitled “Stop paying too much for funds” in The Times (Saturday, 10 March 2018), Annabelle Williams makes a case for advisers to be aware of the impact of fees on investor performance. This has been an issue with the FCA for all of 2017 and promises to have similar prominence throughout 2018.
The Times has quoted Kealan Doyle, co-founder of Symvan Capital, as Annabelle Williams explains how to fight back on fund management fees that are probably higher than you think. Fees are gnawing away at investors’ returns. The solution to this insidious issue is to stop charging investors upfront and ongoing fees. There should be simply one single fee to investors, based on performance.
Symvan Capital is solely focussed on disruptive technology investments. Symvan views the changes to EIS coming into effect this week as an excellent opportunity to ‘nudge’ suitable investors into generating alpha in their portfolios.