Investors brand Fidelity fee as complex and expensive
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.
Fees
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Fidelity slams ‘race to bottom’ as details of variable fee revealed
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.
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7IM renames Unconstrained fund and reduces AMC
Seven Investment Management (7IM) is to rename and change the fee structure of its £62m 7IM Unconstrained Fund.
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PA ANALYSIS: Fund fees wipe out ‘20% of gross returns’
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
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PA ANALYSIS: Multi-asset in spotlight after damning research
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.
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State Street slashes ETF fees as competition heats up
State Street has ramped up the competition among the biggest US ETF providers by slashing prices across 15 ultra-low cost trackers.
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Fidelity switches to performance-based fee model
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.
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Baillie Gifford cuts AMCs across onshore and offshore fund ranges
Baillie Gifford has reduced annual management charges across its range of UK Oeics and Irish Ucits funds, with effect from 1 October 2017.
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Rising advisory costs eat away at managers’ margins
Asset managers are seeing their margins being eroded because investment advisory costs are increasing while management fees are coming down, research has found.
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Morningstar: Time to end ‘gravy train’ of fixed fund fees
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.
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PA ANALYSIS: Are performance fees a fair deal?
Performance fees are often seen as a necessary evil. But the unambitious hurdle rates most funds employ mean fund managers also get rewarded for underwhelming performance. Is that fair?
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PA ANALYSIS: Will wealth managers avoid scrutiny on charges?
Has the FCA asset management review missed a trick by not expanding its demands for transparency to wealth management?