Darius McDermott: Just three top quartile funds in IA UK All Companies sector charge under 0.7%

95% have charges over 0.7%

Tom Eckett
Darius McDermott of Chelsea Financial Services

Darius McDermott of Chelsea Financial Services

Some 95% of top-performing funds over the past five years in the Investment Association UK All Companies sector have an ongoing charges figure (OCF) above 0.7%, according to Chelsea Financial Services.

Of the 60 top quartile funds in the 238-strong sector with a five year track record, only three had charges under 70 basis points. The best was the £275m Montanaro UK Income, which returned 71% over five years and has an OCF of 0.35%. The other two funds were the iShares Mid Cap UK Equity index and the HSBC FTSE 250 index, which returned 58% and 57%, respectively. The firm said this highlights that choosing funds on cost alone does not necessarily lead to the best outcome for consumers. FCA reveals asset management 'remedies': Supports 'all-in fee' including transaction charge esti...

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