Recent trends have seen managers charging 2% AMC when launching new funds. Is this greed set to continue?
Usually, when investors compare investment companies with unit trusts and Oeics, one of the factors cited in favour of investment companies is their lower expense ratio. This was definitely true in the past but it seems managers are getting greedier when they launch new funds. Does this matter, is this trend here to stay and is there anything buyers of investment companies can do about it? Not so very long ago (2002), with markets falling and dire predictions about low returns from equities for many years to come, there was much debate about downward pressure on fees. Only the fast growin...
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