Growth in client assets moving to rebate-free share classes for European cross-border funds has stalled, suggesting that the impact of regulations limiting the use of retrocessions may have peaked. view full article
Assets in European clean classes ‘may have peaked’ – Ignites Europe Read More »
Performance fee data published by Fitz Partners this month indicates that the average performance fee rate charged by funds in Europe has reached 17 per cent. The firm says that although this represents only a slight increase from the 16 per cent figure in 2018, it is accompanied by significant changes in the way these fees are
European performance fee rate reaches 17% – Ignites Europe Read More »
Schroders says its UK funds must reach at least £1bn (€1.1bn) in assets before the benefits of economies of scale can be passed on to investors – a claim rubbished by experts who say the so-called fee breakpoint could be significantly lower. The UK asset manager’s plans to reduce charges for retail investors on its largest funds
Schroders’ £1bn fund breakpoint ‘way too high’ – Ignites Europe Read More »
Charges for traditional index-tracking funds have steadily decreased over the past four years and are in some cases lower than for ETFs, says a research house. Fitz Partners says that since 2016, equity ETFs have seen a 27% fall in their ongoing charges figures (OCFs), whilst charges applied to ‘clean’ share classes of index-tracking mutual
Index-tracker costs give ETFs a run for their money – Funds Europe Read More »
Invesco has decided to cut fees on a range of UK-domiciled funds, as the firm assesses the value of the products under new rules. Charges at nine Invesco funds, with £4.4bn (€5bn) in combined assets, were reduced by an average of 0.13 per cent this month. view full article
Invesco cuts fees on UK range as board assesses value – Ignites Europe Read More »
Questions have been raised over whether investors in funds that levy fixed fees are receiving value for money after research found that the products are more expensive than funds with variable charges. Fitz Partners, a specialist fee research firm, has found that actively managed equity funds with a variable fee model have average ongoing charges
Questions raised over value of funds with fixed fees – Ignites Europe Read More »
One of the strongest bastions of stockpicking, the UK is now following the US by embracing the low-cost, index-tracking approach pioneered by BlackRock and its American rivals Vanguard and State Street Global Advisors. view full article
US’s passive investing juggernauts break new ground in Britain – Financial Times Read More »
…Esma’s approach is likely to mean that different rules will apply to Ucits funds with performance fees being sold into different European markets, experts say. Hugues Gillibert, chief executive officer of Fitz Partners, a specialist fee research firm, says: “The main issue is the creation of a regional or national hurdle to the free distribution
Ban on fund charge caps ruled out by Esma – Ignites Europe Read More »
Investors in UK funds worth £184bn (€214.8bn) are still in higher-charging share classes, despite new rules introduced last year that allow asset managers to move them into cheaper share classes. Assets invested in pre-RDR share classes fell by 18 per cent in 2019, compared with a drop of 14 per cent the year before, according
Assets in pre-RDR share classes fall to £184bn – Ignites Europe Read More »
Close to £184bn of UK investor money is languishing in expensive funds that still pay commissions to financial advisers, despite efforts by the financial regulator to stamp out conflicts of interest and overcharging. According to the consultancy [Fitz Partners], 23 per cent of retail fund assets in the UK are held in these funds, which
UK funds still paying IFA commissions stand at £184bn – Financial Times Read More »