EUROPE - Italy and Spain levy the highest charges when it comes to funds in Europe.
Research firm Fitzrovia International calculated the Total Expense Ratios (TERs) - a fund’s annual total operating management charge, expect brokerage - of over 30,000 funds and share classes in Europe.
Fitzrovia claims that TERs provide a more accurate picture to fund costs than the generally quoted annual management charges.
It also found that funds in Belgium and Germany were the cheapest.
For actively managed funds, Spain had a weighted average TER of 2.12%, followed by Italy (1.86%). Luxembourg and Ireland followed with 1.67% and 1.64%. Belgium and Germany charged the least with 0.93% and 1.02% respectively.
Fitzrovia chief executive, Paul Moulton, said: “Our work shows that there are clear differences in attitudes to fund costs across Europe.
“However, within individual markets, the primary driver is the fund promoter’s own policy on fund pricing and competitive positioning.”
Fitzrovia added that some countries have also been forced to raise their charges as a result of competition from the US.
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