The UK’s cheapest authorised corporate director has tweaked its fee structure, signalling wider trends about regulatory costs facing the industry. Valu-Trac transitioned from fixed fees to an ad valorem fee structure – a percentage of assets under management – at the start of the year, people close to the host ACD say. view full article
UK’s cheapest ACD ditches fixed fee model – Ignites Europe Read More »
‘…Fitz estimates that HSBC’s tiered management fee would represent a 3.6 per cent cut to the firm’s revenues across its World Selection funds. Ms Guthrie says: “The level of assets at which economies of scale can be passed on, and the corresponding discount, should really be reviewed each year as part of the assessment of
HSBC underwhelms with tiered fees – Ignites Europe Read More »
BlackRock will introduce tiered fees to its UK-domiciled fund range as the UK regulator pressures asset managers to pass on economies of scale to investors. The world’s largest asset manager confirms in its latest assessment of value that it will soon introduce an “annual management charge tiered pricing model” to its £196bn (€227.9bn) UK authorised
BlackRock to introduce tiered fees to UK range – Ignites Europe Read More »
Pressure could grow on “dinosaur” asset managers to cut management fees on larger funds, as Columbia Threadneedle joins a small group of firms to adopt a “discount” fee model. View Full Article
Experts say the fixed fee model does not pass on savings from economies of scale UK fund boards have failed to tackle the high costs of fixed fees compared with variable fees over the three years that assessments of value have shone a spotlight on fund charges. Fixed fees have a static percentage charge to
UK value assessments fail to tackle expensive fixed fees – Ignites Europe Read More »
Fees paid by retail investors who invest in funds with ‘clean’ share classes have significantly dropped since 2016, research shows. The ongoing charges figure (OCF) for many cross-border European funds investing in equities has fallen by 7% while assets have climbed 86% over the period, according to research by Fitz Partners. To read the article,
The Financial Conduct Authority’s (FCA) recent review of fund managers’ Assessment of Value (AoV) reports makes for “pretty damning” reading and marks a “huge blow” to firms, although the findings are unsurprising to some industry commentators. view full article
FCA value assessment review: An ‘uncomfortable read’ but unsurprising – Investment Week Read More »
A Financial Conduct Authority (FCA) review of fund managers’ Assessment of Value (AoV) reports has revealed widespread failures in the quality and content of the documents, with the regulator warning it will intervene if firms do not improve. In the report published today (6 July), the FCA said it expects “more rigour” from fund managers’
A review of 18 fund managers between July 2020 and May 2021, covering different business models and sizes, found most had not implemented Assessments of Value (AoVs) arrangements that met FCA standards. view full publication
Fund managers falling short on assessing the value of their funds – FCA Read More »
Columbia Threadneedle has started a review into fund fees with a specific focus on the way economies of scale are passed on to investors, following its second annual value assessment. view full article
Columbia Threadneedle embarks on fee review – Ignites Europe Read More »