Fitz finds better value in 'twin' share classes carrying performance fees

Europe-wide survey

Anna Fedorova
clock • 2 min read

Research provider Fitz Partners has analysed the ongoing charges figures (OCFs) on European products offering 'twin' share classes that charge performance fees, and found these work out cheaper for the investor than the original share class without a performance fee.

The group analysed so-called 'twin' share classes offered on the same European investment products, which are identical in every way apart from the level of management and performance fees charged. Where the original share class does not incorporate a performance fee, a 'twin' share class with a performance fee would have been launched in response to demand from fund buyers, with both share classes targeting the same area of the market.  Though this practice is primarily prevalent in the institutional market, Fitz said these options were also available to retail investors across Europ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Industry

Door's Shilpan Patel: Culture takes centre stage

Door's Shilpan Patel: Culture takes centre stage

Fund selectors increasingly aware of poor culture

Shilpan Patel
clock 27 June 2025 • 3 min read
Artemis' Gent on how active houses can succeed in an evolving marketplace and strategies for growth

Artemis' Gent on how active houses can succeed in an evolving marketplace and strategies for growth

Time of rapid evolution for the wealth and intermediary sector

Katrina Lloyd
clock 26 June 2025 • 7 min read
Winners Gallery: Fund Manager of the Year Awards 2025

Winners Gallery: Fund Manager of the Year Awards 2025

Ceremony on 19 June

Investment Week
clock 24 June 2025 • 1 min read
Trustpilot