Fund managers have moved more than 320,000 investors into cheaper share classes of funds, saving them over £30m thanks to their value assessment reports, analysis has revealed.
Figures from The Times suggested investor savings on being moved out of more expensive, or legacy, fund share classes ranged from 0.11% to 0.5% per year, equalling between £110 and £500 on an investment of £100,000.
Averaging these savings at £100, investors will have saved around £32.1m over the course of a year, The Times claimed.
The analysis comes after the majority of large UK asset management firms have published their assessment of value reports (AoVs), which force them to decide whether their products offer clients value or not.
These considerations can be due to performance or charges.
Ninety One recently said almost a third of its funds did not offer value, having underperformed their benchmarks, while Jupiter Asset Management switched a total of 42,000 investors out of legacy classes of shares by introducing new, cheaper units.
Edinburgh-based Baillie Gifford, meanwhile, shut two funds investing in UK Government bonds, having failed to consistently meet their investment objectives.
All fund managers offering funds in the UK have been publishing their first AoVs since the fourth quarter of last year, following the action taken by the Financial Conduct Authority in the wake of its 2018 Asset Management Market Study.
The process requires asset managers to prepare a report for fund boards, which, with the aid of independent non-executive directors, sign off on the report before a public AoV is produced.
There is no official template for how AoVs should be presented, but the FCA has provided a "non-exhaustive list of elements prescribed for the assessment" of seven criteria: quality of service, performance, management costs, economies of scale, comparable market rates, services and classes of units.
Some big firms are yet to publish their AoVs, which City regulator the Financial Conduct Authority has said must be published within four months of a fund house's accounting year-end.