Threadneedle's Fleming: Share classes may not be as 'super clean' as expected

Investors should not mistake 'preferentially-priced' share classes for the true cost of buying a fund, according to Threadneedle chief executive Campbell Fleming.

Speaking at Investment Week’s Fund Management Summit, Fleming said platforms’ decision to seek ‘super clean’ share classes from fund groups may not guarantee best results for the end consumer. Threadneedle is among the fund houses to have committed to super clean deals with Standard Life, but Fleming highlighted the continued importance of focusing on total cost of ownership. “When you go and look at preferentially-priced share classes, they may end up not being as super clean as people expect. It is important to compare [funds] on a total cost basis. It is all about equivalency,” he ...