Moira O'Neill, Personal Finance Editor, replies:
Five per cent upfront is standard for the fund management industry. Although with many funds you can get the up front fees discounted through a fund supermarket such as Fidelity Funds Network or Hargreaves Lansdown Vantage, I can't find anywhere that discounts this particular fund, though if you buy it through a financial adviser they may be able to do a deal with the manager.
Performance fees can be seen as a good thing because the manager has to meet the minimum 8 per cent to start being remunerated. An 8 per cent return in an environment of low interest rates looks quite decent. It's also a return uncorrelated to the equity markets so a good way of introducing some diversification to your portfolio. Many professional fund managers are including the EEA Life Settlements fund in their portfolios for this very reason.
