Innovation failing to win over fund buyers in race to 'cut fees to the bone'

Managers struggling to find solution to pressure on costs

Mike Sheen
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Growth of passives and evolving investor appetite have driven firms to innovate with regard to their fees
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Growth of passives and evolving investor appetite have driven firms to innovate with regard to their fees

Active fund managers are yet to find a solution to mounting downward pressure on fees, as investors shun performance-related charging models but are also still demanding further innovation from fund houses to reduce fees.

FE data shows the average OCF for the main share classes of all 3,641 Investment Association funds is 0.98%, ranging from zero in primarily passive vehicles to 7.25% in the HC Charteris Property fund....

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