JP Morgan Asset Management’s decision to pass on some economies of scale through its operating expense fee is being welcomed as a step in the right direction, but asset managers should be re-examining their annual management charge in order to truly provide value for investors.
The mere threat of more transparency will push asset managers to offer discounts to investors, according to one industry expert on a quest to uncover the true cost of investments and the apparent conspiracies against transparency in the market.
Fidelity’s fee overhaul has been hit by accusations that it is unnecessarily complex and will see investors charged over the odds for mediocre fund performance.
Fidelity’s move to a performance-based fee model has nothing to do with pricing pressures in the industry it has claimed as it revealed details as to how the structure will work in practice.
Seven Investment Management (7IM) is to rename and change the fee structure of its £62m 7IM Unconstrained Fund.
The European Securities and Markets Authority (Esma) is turning up the heat on asset managers, highlighting the impact of fund charges on returns in a fresh report. Fund fees wipe out an average 20% of gross returns, according to the regulator
You are more likely to be “hit by lightning” than see returns that beat inflation and cash from a multi-asset fund, according to fresh research raising the debate into cost effectiveness once again.
State Street has ramped up the competition among the biggest US ETF providers by slashing prices across 15 ultra-low cost trackers.
Fidelity International is the first major asset manager to make a switch to a “value for money” charging structure. The asset manager will give money back to clients when its funds underperform.
Baillie Gifford has reduced annual management charges across its range of UK Oeics and Irish Ucits funds, with effect from 1 October 2017.
Asset managers are seeing their margins being eroded because investment advisory costs are increasing while management fees are coming down, research has found.
The time has come to offer investors a fairer deal and drop fixed fees for performance-based charging, Morningstar’s head of global manager research Jeffrey Ptak has said.
