On 24 March 2023, the Central Bank of Ireland (the “CBI”) published an industry letter (the “Letter”) on the 2021 Common Supervisory Action (“CSA”) on costs and fees of UCITS (here). The Letter outlines the CBI’s findings from the CSA and supervisory expectations and key actions for fund managers. view full notice
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 »
Liontrust’s directors have claimed that its fixed administration charge follows industry best practice, despite other firms increasing their use of variable charges in order to pass on cost savings to investors as fund assets rise. view full article
Liontrust’s claims of best practice for fees under scrutiny – Ignites Europe Read More »
“Merian Global Investors’ UK fund board is to review the pricing structure of its funds to ensure that cost savings from future asset growth are passed on to investors. The firm’s UK funds have fixed fees, covering management, administration and other operating costs. This type of fee model has recently been criticised for charging investors
Merian to review fee structures following value assessment – Ignites Europe Read More »
… Fitz Partners chief executive Hugues Gillibert says a fixed fee model “might be simple and predictable” but is not necessarily transparent, which is what the regulator wants. view full article
JPMAM variable fee leaves room for further economies of scale – Portfolio Adviser Read More »
“JPMorgan Asset Management is cutting the charges on its UK fund range as it switches from a fixed expense model to a variable one.” Hugues Gillibert, chief executive officer of specialist fee research firm Fitz Partners, says “JPMorgan’s move is part of a trend in the industry for more differentiation between firms on pricing…” view
JPMorgan cuts charges as it switches cost model – Ignites Europe Read More »