Investors’ needs should be prioritised

THE WARNING from Sean Hagerty, head of Vanguard’s European business for investors, about the impact of high management fees charged by some funds on long-term investments is welcome [“Vanguard calls on funds to issue ‘cost warning’”, February 20]. That such fees are often deducted from investors’ own capital rather than from returns generated by the management should be given equal prominence in any invitation to invest.

If fund managers’ livelihoods depended on a level of performance from which their fees might be paid, this would be “a clear sign of intent” that investors’ needs are being prioritised.