Costs are starting to come down but where it ends up we don’t know, Neil Cowell, head of UK retail sales at Vanguard, says in the latest FTAdviser video interview.
Speaking to FTAdviser’s Emma Ann Hughes, Mr Cowell said costs are the single most important factor when picking a passive.
He said: “I think it is great to see costs coming down. It can only lead to better returns for customers.
“They create an inevitable gap between a market return and fund performance. There is compelling evidence that shows low cost funds outperform their high cost counterparts.
“For us, it is a relentless thing. We lower costs. We understand the importance of it. I think we are starting to see that happen much more.
“Post-RDR cost is playing a much greater part in the conversation advisers have with their clients.”