Funds recommended by investment consultants fail to outperform net of costs — CMA

Posted by Robin Powell on March 22, 2018

More evidence has emerged today to confirm what The Evidence-Based Investor has been saying for some time — namely that investment consultants extract value from the investment process rather than adding it.

The Competition and Markets Authority — a non-ministerial department of the UK Government — is undertaking an on-going investigation of the investment consultancy market.

As part of that investigation, it has been carrying out research into whether investment products recommended by consultants actually outperform the market. It has now announced, in a working paper, that its quantitative analysis has found no evidence that investment products rated as ‘Buy’ by investment consultants have outperformed, net of fees. This held for all consultants, and for all significant asset classes.

Their universe covered recommendations from WTW, Hymans Robertson, Redington, Aon, Capita, Russell, KPMG and LCP.

The paper makes for very interesting reading. Interested parties only have until Thursday 5th April to respond to the findings. If you’d like to submit a comment, you should email it to

You can rest assured that investment consultancies will be busy working on their own submissions over the next weeks.


Read the report here:




ROBIN POWELL is the founder and editor of The Evidence-Based Investor. A freelance journalist, he runs Regis Media, a specialist content marketing consultancy for financial advice firms around the world. You can follow him on Twitter and on LinkedIn.

The Evidence-Based Investor is produced by Regis Media, a boutique provider of content and social media management to financial advice firms around the world. For more information, visit our website and YouTube channel, or email Sam Willet or Christina Waider.


How can TEBI help you?

Help for individual investors

Help for institutional investors

Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.


How can tebi help you?