Where now for fund pricing transparency after RDR?


As the world adjusts to the Retail Distribution Review (RDR) funds have been impacted alongside other products, but will prices rise (and become more complicated) as a result of the RDR, or will the regulator's goal to lower fund costs be achieved?

Pricing has always been a difficult subject in the UK funds industry. There is a range of elements factored into unit and share prices for which investors then pay, regardless of whether they are buying a fund at 150bps or the new 75bps. But rather than simplifying charging structures for investors, the RDR appears to have provided an extra layer of complexity.   Alan Gadd, independent consultant to the asset management industry, said in fact a lower-charging ‘clean’ RDR share class could actually be carrying relatively higher additional costs. He said today many managers are contendi...

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