UK value assessments fail to tackle expensive fixed fees – Ignites Europe

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 cover fixed operating expenses and are becoming more popular in the UK, with a quarter of share classes now using the structure.

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