UK - The number of funds with management fees rising is on the increase, according to research company Fitzrovia International.
During 2000 - across all 25,000 funds worldwide monitored by Fitzrovia - the average increase was 10% among 530 funds where a change was recorded, compared with only 1% in 1999.
Commenting on the research - the first time of its kind for the group - Fitzrovia chief executive, Paul Moulton said: Annual charges for funds that are growing should be falling, not rising, as these funds benefit from economies of scale that could be passed onto investors.”
Regarding offshore funds - investing across a comparable range of ‘mainstream’ investment areas (US, Global, Europe, Japan or Far East) - the average actively managed equity fund had total annual charges of 1.94%, compared with a quoted management fee of 1.25%. The average bond fund posted total annual charges of 1.26% (compared with a quoted management fee of 0.77%).
By Madhu Kalia
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