Fees charges for UCITs fund products are reducing investors' gross returns by 25% on average, new research from pan-European regulator ESMA has revealed.
ESMA's first Annual Statistical Report on the cost and performance of retail investment products across Europe is the latest regulatory intervention signalling greater pressure on asset managers to provide value for money for investors. FCA: Five asset management trends threatening financial stability The regulator said costs represent "a significant drain on fund performance", which impacts retail investors "to a much higher extent" than their institutional counterparts, which on average pay half as much in fees. In addition, active equity products were found to "consistently" und...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
