Fund managers are not, as a rule, poorly paid. The successful can be very well paid, even when they become unsuccessful (Mr. Woodford, I presume). Terry Smith, of Fundsmith, his own company, clue’s in the name, has been successful in every respect, and worked hard to keep the fruits of his success away from the taxman. Fundsmith Investment Services Limited handles the ‘administration, trading and research’ for Fundsmith, the fund manager. It’s based in Mauritius, where it’s very sunny and companies don’t have to file accounts. It billed the fund manager £156m for its services and is 61% owned by Mr Smith; who’s also a partner in the UK business, from which he trousered £30m. Nice work if you can get it.
How we as advisers charge for our services has been the subject of navel-gazing debate in our profession for some time. Should we work on accountant- and solicitor-style hourly rates, charge a fixed subscription or have a menu of tasks and bill you accordingly.