Vanguard retains top spot in investor value assessments
New research by investment information platform Boring Money shows that, according to fund investors, Vanguard was the fund manager which they felt delivered the best value in 2020.
Boring Money surveyed a total of over 6,500 advised and non-advised fund investors in 2020, on a quarterly basis, to understand which asset managers they felt were delivering the best value. And why.
- The average value score for the 31 fund managers surveyed throughout 2020 was 59%
- This means 6 in 10 fund investors think that the fund managers they use offer good value.
- Vanguard was the best ranked manager in terms of delivering value
The brands most likely to score highly for overall value are well-rated for softer metrics including “Quality of Service” and “Trust in Brand”.
Boring Money MD Holly Mackay comments, “We have been tracking what investors have to say about Value for 2 years now. As markets have been volatile, we have noticed the disparity of what investors value. For many, it is peace of mind, quality of service and trust in the brand above anything else.
“Other more sophisticated investors are more likely to focus on performance alone. Baillie Gifford, Fundsmith and Lindsell Train are brands which are well-rated for performance but tend to suffer in general value judgements because of supporting softer factors.”
Lindsell Train the highest ranked when investors consider performance alone
- When asked to assess Value in terms of performance only, Lindsell Train was the brand that scored the highest.
Investors nearly 4 times as likely as advisers to have read one
The Assessments of Value were more likely to be read by investors than advisers with 20% of fund investors reported having looked at or read at least one.
This contrasts with reported adviser interest. Research conducted by The Lang Cat shows that just 6% of advisers had read a value statement.
Mackay comments, “I was surprised to see how many investors have read a report, especially as the quality of these reports was so variable in Year One. Over time, I suspect we will see more firms differentiate and use these reports as marketing materials as well as regulatory reporting documents. A successful Assessment of Value report should succinctly answer most of the questions which retail investors have either at point of purchase or ongoing review.”
- ENDS -
Notes to editors:
- This research is conducted on a quarterly basis with 1,500 fund investors i.e. investors who can self-identify as fund holders.
- The research was conducted in 2020 in March, June, September, and December.
- The Boring Money Investor Tracker is sold to clients on a subscription basis and details can be seen here.
- The Lang Cat research is cited with permission and is sourced from the State of the Adviser Nation report, with research conducted in September/October 2020.
For further information, please contact:
Holly Mackay, CEO, Boring Money
About Boring Money
Boring Money is an independent research and publishing house which provides information, tips and Best Buy tools to savers and investors. It recently raised £900,000 through crowdfunding, with more than 12,000 weekly readers and investors supporting and engaging with the company. The business conducts regular research with industry providers and UK consumers to track the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 investment platform providers and also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.
Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 12 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog